Serious response only please.
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I have been thinking of purchasing a house in Kathmandu, so that even though I might not be moving rightaway, in a few years time, I will have a cozy place to live.
Since I own some land in Kathmandu in an area where I don't intend to live, I have been debating what would be the right thing to do, which would be the right place to move to etc. I do have decent saving and since a few years, I was thinking of buying a house with about 1 ropani land, near some temple area (i.e. Pashupati, Swayambhu, or Budhanilakantha).
When I look at the prices advertised in real estate sites, I find them ridiculous. For example, the price of a house I liked is 3 karod, and the owner claims that it is yielding 80 thousand in rent per month.If I get 4 lakh rupees per month by just putting money in banks (some reliable banks actually pay as high as 15% interest for large deposits), how on earth would I be tempted to buy the house? I already hate the hassle of raising rent in a house I bought in Birganj awhile ago.
[I was also amused when I found someone putting up his house for sale at 2.5 karod, but was willing to rent it out for serious long term renters for 50 thousand per month. Basically, all I have to do is put 2.5 karod in bank, get almost 3 lakh rupee per month, pay 50 thousand to this house owner, and lock the house for 5 years for rent so the house is all mine. Meanwhile, I can live in Kathmandu, follow the ebb and flow of realty prices, and move in at the appropriate time. In five years, my 2.5 karod will actually be 5 karod.]
Newspapers have reported that the market is in 'correction course' (i.e. the price is dropping). In deed, if I had sold my land last year, I could have netted 3 karod easily (people actually offered that), and in a year, it would have risen by 30 + lakh. Now, I don't believe anyone will give me 2.50 karod.
I gave these examples to show how nonmarket, irrational forces are holding up these prices. The only sales pitch people are making is that the house/land price in KTM will ALWAYS go up because people want a piece of land in the capital. Well, I think people will also want to sell their house when the price is high and move out to live peacefully in other cities/countries while they get good interest to enjoy. In fact, you can see hundres of houses, ropanis of land on sale at real estate sites these days.
I found this housing thing irrational and fishy since the beginning.A house should be affordable (i.e. one should be able to pay its price in 30 years of his job). At least, in a country like ours, that should be the goal of our government. Otherwise, we won't be able to control the corruption in statecraft. Furthermore, govt should strive to make sure that people invest in shares of firms. Shares are better options because one can always sell the shares quickly and take the cash out. Land is so hard to sell when things are getting worse.
Last edited: 09-Sep-10 05:58 PM
Last edited: 09-Sep-10 06:05 PM
