Posted by: kulsonam January 3, 2013
Real Estate Bubble
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Freedom:

1. I am not saying Nepal economy is doing well. I am just saying it is not going down like Europe and the great recession of USA.. it has already gone done. It wont crash more.
2. I am not encouraging people to invest few crores here and there. I am suggesting  those who are overseas and who may want to live in kathmandu some day to consider buying apartments now. Apartment price has come down more than 50% from the peak. You can fetch 1-2 bedroom apartment easily around $40k. I believe that is a very reasonable price considering some apartments have very good facilities like here in the US. 2 bedroom apartment in New York City is going for $400-500k. Compared to that, ktm apartment is a bargain.
3. I am not a economist but simple rule of macro economy applies:Nepal Rastra Bank has surplus foreign currency and it is growing thanks to remittance. Nepal finance ministry is collecting more tax revenue than the bidget is allocated to spend. In both cases, there is a surplus. That says the country is not going down. It may not be growing, but it is definitely not going down.

Oh by the way, commercial banks are making lots of money. Nepali dont borrow a lot. They trade in cash. People save money for safety net When it comes to spending, Nepali ( all Asians) are conservative which is a good thing.. 

Thats all. I am not so optimistic, but not passimistic either. What we lack is stable government and the security. Only god knows when that will come.
 
Last edited: 03-Jan-13 04:41 PM
Last edited: 03-Jan-13 04:47 PM
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