THE HOUSING BUBBLE TRAP

As per the circulating reports around the world the realty rates are nowhere near corrected.
History tells us that - real estate rates are quick to rise and with an exponential bias (especially in an inefficient market like India.
However when it comes to correction - it is real slow and painful.
It's a pain that has already started for those who bought their second house in 2005-2007 .
But where does the sector stand in India?
Well the PSU banks are lending to the Real estate developers in a big way and that too at a subsidised rate.
..and what does that mean for us?
Well it means that your hard earned money that you are putting in the banks at 5-7 % is being given to the BIG real estate mafia(if we may call them so). This is giving time to the property lobby to weather the fall and sell you the same property at same (if not higher) rates.
Though I'm no supporter of the Private and foreign banks- as per Mr. Dayal of Quantum - it makes sense to ask the bank why should you put your savings in their bank when they are just subsidising the fella who is selling you a more expensive house.


Think...!!!!!!!