Thursday, July 26, 2007

To buy or not to buy

To be or not to be: that is the question

Shakespeare could not have put it better even after hundreds of years!

The recent boom in the economy and the spurt in the Real-Estate prices, especially in Hyderabad, have individually fueled my predicament. And, I am sure, for thousands of prospective buyers like me across the country.

Not long ago, in the late nineties, a flat at a particular price range was a good buy but not "affordable". Thanks partly to the "lower" income levels and partly due to absence of easy funding options of today.

As I grew along professionally so did my purchasing power but alas the quality of construction left a lot to be desired and not many projects were coming up in areas one would like to buy. What ensued was a period of lull when the pace of growth was stable but steadly building-up. This was the "Golden Period" for the real estate market. Some good quality projects in decent areas came up. Many struck the right balance in quality and price, the proverbial SST (Sasta, Sundar & Tikau) variety and got lapped up quickly. Banks were also waking up to this opportunity and loans were getting easier to obtain. What I was waiting for was to settle down and a good project to fall into my lap. Anyways, the point is that I did not buy real estate when I could have. The fault is solely mine. Period.

The prices have been escalating, nay, elevating! their way out of my reach. It was as if a divine conspiracy was unfolding to deprive me of an opportunity to buy a house for myself. From a figure of 800-1100 per square foot the prices are now in the range of 3500-7000 per square foot and this in a only a matter of few years.

Have the prices topped out!? Has the market stabilised? When is a good time to buy? Is this a good price to buy? Will I see any appreciation in the next few years?

To buy or not to buy: that is the question!

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Copyright © Kartik Agarwal - 2007