INVESTING IN REAL ESTATE IN ANDHRA PRADESH - THEN READ THIS BEFORE YOU DO SO

The Reality of Real Estate
It’s the time to be cautious. The reality of real estate is kept as a public secret by politicians, beurocrates and economists. Everyone knows the crisis in US Economy, and real estate burst after a great surge, even the banks which lent also went bankrupt…..
This is what exactly is going to happen in India, Andhra Pradesh in particular, too soon.
What is going to happen?
· Price of land, apartments will fall like never before, and they continue.
· Defaulters of bank loans will increase.
· Infrastructure companies, Real estate companies and all industries based
on real estate will be bankrupt.
· In turn, economy will have a ripple effect. And economiy will face a slow
down.
· Suicides will increase.
The reasons being:
Every one will hold more than one property. No body will try to buy more.
In fact they will sell to get money. No one would stay in rented houses.Rents will come down. The growth which we had seen through past 2 years is not real, it is artificial. On one acre of land if we invest one crore,can anyone earn back that one crore within 10 years doing any business
on the earth? (without selling the land.) Honestly, no economist, no politicians like to talk about this. Because, they knew the fact, and in fact they buy to sell and earn double.
The key factor, NRIs, Software and ITES employees, who were responsible for real boom, are facing a grim time. They are not investing like before. There is no balance in increase in real estate prices and increase in per capita income. Our salaries will not double with real estate.
Who is going to be affected?
Of course, Common man, who bought property last year and this year, i.e. at the brim of real estate surge. The end buyer of land will be worst hit because, the price for which he got the land would be the highest. And he cannot get that price by selling the land or doing anything on that land.So he cannot pay his debt and become defaulter of loan.
Why AP, and Hyderabad in particular will be worst hit:
For real estate prices, now there is no way up, only way to go is down, because it cannot be stable also.and Indian Government or any state government in India is not so powerful as US Government to have a Bail Out Plan.
All projects are going to Tamil Nadu, Karnataka but not coming to AP.Even 100 FAB cities won't be able to create any more demand.
Andhra, investors are no more interested in Hyderabad. They already expanded their horizons to Guntur, Vizag, Vijayawada, Tirupati, Chittur, Nellore.
Advice:
Don’t buy any property for business or investment purpose. Buy only if you are going stay there and use it. Don’t go too far. Fall and Rise, Boom and recession comes and goes in a cycle. This is the way open markets works... And there is nothing wrong with it..
Recession will infact lead to a boost in entreprenurship skills of the people as the raw material and labor costs would come down and successfull businesses would again lead to the situation of boom.There was global recession from 1997-98 onwards to 2002-03. These are testing times and we need to stand firm....