Posted by: tyrannyoflogic May 21, 2010
घरजग्गा अब कती माथि ?
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Banks lent out money to be invested in the real estate in Nepal which is THE reason for the severe lack of liquidity of assets in Nepal and thus the high interest rates for deposits.
Kumari bank is offering a 10 percent interest on a regular savings account(not a fixed deposit) .
Even Bank of Kathmandu whose interest rates pa were around 2.5 is now offering a 7 percent interest on a regular savings account. This is going to divert the investments from real estate into bank accounts more or less. The unrealistic rise in the land value has settle down some time, the bubble has to go and Nepal is virtually on the brink of it right now.

I agree with pire to hold off on the investments in Nepal as of now because prices are gonna drop for sure and when they hit rock bottom in about a couple of years that would be the best time to buy land. India went through a somewhat similar situation in the past decade.

just a speculation ....
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