tag:blogger.com,1999:blog-5269558537262232516.post8788429951412264922..comments2024-03-28T14:01:25.631+05:30Comments on Ravi Karandeekar's Pune Real Estate Market News Blog: Home loan interest rates have come down to around 10.25 - 11% on amount up to Rs 30 lakh! Are you booking a 2 bhk compact flat at an affordable rate?Ravi Karandeekarhttp://www.blogger.com/profile/01681035021606018101noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5269558537262232516.post-84391201819622333612008-11-15T11:22:00.000+05:302008-11-15T11:22:00.000+05:30Words 'compact' and 'affordable' are f***ing misle...Words 'compact' and 'affordable' are f***ing misleading. Tell the rate per sq. ft. and see how the buyer shows you ..i.. for any damn interest rate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5269558537262232516.post-35511477049443427132008-11-10T12:59:00.000+05:302008-11-10T12:59:00.000+05:30"Are you booking a 2 bhk compact flat at an afford..."Are you booking a 2 bhk compact <BR/>flat at an affordable rate?"<BR/><BR/>There are two fundamental flaws in this argument.<BR/><BR/>1. Purchase decision is more dependent on property rate and less on interest rates. So when u say affordable rate, first need is to see property rate are affordable or not. If they are not, even a 0% interest rate will be useless.<BR/><BR/>2. Lets assume relavance of rates to be only interest rates. Now if someone says interest rate are affordable ( i doubt this is tru even today), they can chance anytime. In just 3 years, we have seen rates in the range of 7-14 %. There is no gurranety that if u buy say at 10% today, they will remain same for loan life span. So even this argument does not hold any water.<BR/><BR/>Bottom line is property raets are totally inflated and unafforable. Unless they come down by at least 50% , no buying activity will start. <BR/><BR/>I know there will still some games be played like threatenign to increase rates further. But in the end, builders are set to burn their own fingures unless they cut down greed and lower the rates drastically.Anonymousnoreply@blogger.com