Occasionally I get an email regarding India that piques my interest.

Such is the case today with this link from an Indian reader: “Property is Always a Good Investment” says the president of the National Association of Realtors India.

The prices will go up in the near future with costs of construction increasing. This is a good time for prospective homebuyers to make a move and acquire property. Farook Mahmood, Founder President, National Association of Realtors – India, shares some thoughts on the market conditions, in this chat with TOI.

“Always a Good Investment”

There is no need to read further. Indeed there was no need to do anything but read the title of the Economic Times article and laugh out loud.

However, for the sake of amusement, I did read the article to discover…

Property is always a good investment. It is more so at a time when the markets are stable. If you buy at a time when the markets are stable, the value appreciation is sharper when the markets move up.

It is an effective hedge against inflation in the long term. In volatile financial market conditions , real estate has always bucked the trend. Property has always delivered high capital gains for investors at all points in time. This makes it a safe option and a good avenue for risk-averse investors. It is good for those who want it for their own use or purely as an investment to be liquidated later.

In these days, when the stock markets are volatile, and apart from gold all other asset classes are not yielding the desired returns , property is the best bet.

This is the best time for those undecided to buy. There are many prospective homebuyers waiting in the wings either because they expect the prices to come down or home loan interest rates to drop in the near future.

Property prices seldom come down. With the existing values, I don’t see the possibility of a price correction. There are various reasons why property prices will only go up – the costs of raw material, labour and acquiring land are going up by the day. Inflation is pushing up the costs too.

Such blatant nonsense is exactly what one hears at market tops. I do not follow India closely but in isolation, that preposterous infomercial, disguised as a news story, suggests property prices in India are on the verge of collapse.

Mike “Mish” Shedlock
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