Posted by: newStudent February 17, 2011
Login in to Rate this Post:
0 
? 
?
I think it is only partially true that everybody wants to have 4 ana land in KTM. Lands in KTM are attractive, but not everyone needs them once they cease to be attractive investment. People kept on buying these lands because of the same speculation--that price will keep on increasing. Now, there will be a long slump, like Japan's in 90s. In fact, if more apartment buildings are erected, it is even more likely that people won't put money in undeveloped land/house. Lots of people also rushed to KTM because of Maoist insurgency, and it is also subsiding now. Land rose 10-20 times already in a year or two, and it is time to correct the price and this is what is happening. I would wait not only 1 or 2 years, but at least five years. I see reports of jagga dalal people jumping from the high building and small banks which invested in lands crashing down, so I can read the sign about who the desperate people are. Any man with karods in his bank balance would be at least that smart!
I also think that most of the people who have karods of rupees probably already have a house in KTM, so "I want a house in KTM" factor is already not so effective. 80% of our country's economy is based in KTM, so most of the karodpatis are there. It is unlikely that a man with a house in KTM wants more houses in KTM now as a form of investment. Ultimately, the only thing that can guarantee investment in anything is its attractiveness as an investment. Going by the price of a house in Kalimati (1 karod per ana), why would someone buy a 4 ana house that gives him a rent of 50 thousand rupees per month (with some hassle), where as he can get 4 lakh per month easily if he just puts that money in the bank? Ultimately, economic prudency should drive the market, not emotion.
Agnibikram,
So, you really got the job. I am glad you have a place to work.
Why don't you convince your bank and Chaudhary's to buy more land in KTM? They are sitting on billions of rupees rightnow. May be you will get a good cut.
Just tell them that in three years, a land worth 1 karod today will be worth 3 karod. Nice try, genius.
I also think that most of the people who have karods of rupees probably already have a house in KTM, so "I want a house in KTM" factor is already not so effective. 80% of our country's economy is based in KTM, so most of the karodpatis are there. It is unlikely that a man with a house in KTM wants more houses in KTM now as a form of investment. Ultimately, the only thing that can guarantee investment in anything is its attractiveness as an investment. Going by the price of a house in Kalimati (1 karod per ana), why would someone buy a 4 ana house that gives him a rent of 50 thousand rupees per month (with some hassle), where as he can get 4 lakh per month easily if he just puts that money in the bank? Ultimately, economic prudency should drive the market, not emotion.
Agnibikram,
So, you really got the job. I am glad you have a place to work.
Why don't you convince your bank and Chaudhary's to buy more land in KTM? They are sitting on billions of rupees rightnow. May be you will get a good cut.
Just tell them that in three years, a land worth 1 karod today will be worth 3 karod. Nice try, genius.
Last edited: 17-Feb-11 11:09 AM