How many of you have considered buying a house during slump? Not many. I would love to hit the deal but there is liquidity crunch and loans are not easily available. The rates of houses/apartments have not come down drastically as the media claims. It is just that at some places that the correction is happening and honestly I don’t see much of a difference from a common man’s view.
Before six months the rate of a 3-bedroom apartment near my home was close to Rs. 35 Lakh (excluding registration) and now it has come down to Rs. 30 Lakh. Still I think it is not a fair deal. Since there is heavy crunch in the market the builders are facing the music and they are not able to sustain themselves and if they don’t hold on to the prices then there are chances that they might be in trouble.
My best bet would be just to stick with the money and then buy it when I think that the rate that is quoted for the apartment is reasonable. I know that the builders also have to make money and they struggle real hard but that does not give them the liberty to make 100 % profit on every house that they build. I am sure that the prices of houses will come down.
As of today, there are lakhs of people who are losing job and I am sure that those people who have lost jobs would have dreamt about the house and bought one. Now the situation of such houses is in bad state. I don’t know how the banks can recover the money from such people. Even if they want to sell the house there should be buyers and in the current scenario things look bleak.
I expect the rates of houses to come down further as the prices of steel, cement and other construction materials have come down and the profit margin of the builders have started to decline. This is good news for the buyers. If you have stashed the cash like crazy then just bargain and win the house. It is a right time for guys like you who have struggled to make it, but for others I would suggest you to wait and watch and then hit a home run.