Posted by: pire April 5, 2011
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I don't believe that inflation makes buying a house more desirable than keeping money at hand(or bank). For example, when inflation goes up, people prefer to buy house, But then banks compete to get deposit and increase interest rate. That's how market works.I don't see anything other than interest rate (or its comparison with housing rent) being a good predictor of a market value of a house.
Furthermore, remember earthquake is around the corner. This makes buying existing houses even more risky--don't pay a premium over a land value!!
If government puts money in building new roads (six lane road to Hetauda, Banepa, Dhulikhel), I doubt people will have incentive to live in a god forsaken city where there is so much pollution and a perpetual water crisis.
As for commercial prospect, if city center mall and other malls themselves are facing crisis, what can an isolated house next to the mall offer in terms of business prospect?
Furthermore, remember earthquake is around the corner. This makes buying existing houses even more risky--don't pay a premium over a land value!!
If government puts money in building new roads (six lane road to Hetauda, Banepa, Dhulikhel), I doubt people will have incentive to live in a god forsaken city where there is so much pollution and a perpetual water crisis.
As for commercial prospect, if city center mall and other malls themselves are facing crisis, what can an isolated house next to the mall offer in terms of business prospect?
Last edited: 05-Apr-11 05:20 PM