1. Should one buy a house in Kathmandu rightnow?

    If you have money, you can lock interest rate for 5 years at today's price. In other words, interest alone (and interest ko interest pani) will be about 2 karod for 3 karod in bank now, so it's 5 karod. Will a house purchased in KTM be worth 5 karod in 5 years? I doubt it will. In fact, the indications are that it will not. It will be more like 2 karod.

   Historically, rent price should track house price. It was like that 4~5 years ago. Any time the price is higher, there is 'speculation' going on, which could be very dangerous for unwise investors. Kathmandu's land and housing prices show amazing speculation.

Now look at this listing. Of course, I would like to purchase a house like this, if possible. But 

The investment required to purchase this house would  be somewhere along 4-5 karod, where as the return is 1 lakh per month. How can one justify this? As an investment, the house has no meaning.

2. Alternative sectors

I think there are quite a few sectors that will continue to yield high profits. Not only food related sectors, but also sectors identified for infant industry protection. But they will all go to private hands..not to people like us working our ass off in foreign countries. chinjan ko bhar ma investment garnu bhaneko dangerous chij ho.

So, I hope there is some corporate structures into it.

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In addition to these, I have no problem with greencard wala selling houses and bringing money here. First, it helps reduce pressure on property market in ktm (if there is any); second, it pressurizes govt (when there is one responsible one) to do things to encourage local investment. Those who take their money to foreign countries will bring it back too when things are better.

Last edited: 10-Sep-10 11:25 AM