Is there anyone who is intrested to buy house in KTM???

Political instability, geographically earthquake prone, lack of basic resources like water and electricity, no car parking area, no drive way, and no credibility of the material used to construct the building....give me one good reason why I should buy your house for 4 crore or 40 lakh?  Have you ever dared to convert that money in USD?  Nepal government needs to have a price ceiling for inflation.  Inflation is not growth. What's the comparative value or absolute value for Nepali rupeee?  I think toilet paper is more expensive than Nepali rupee.  No investor wants to invest in Nepal because of these crazy reasons.  You are asking for a house for 4 crore which esentially would not even be worth 30 lakh.

 I don't believe that inflation makes buying a house more desirable than keeping money at hand(or bank). For example, when inflation goes up, people prefer to buy house, But then banks compete to get deposit and increase interest rate. That's how market works.I don't see anything other than interest rate (or its comparison with housing rent) being a good predictor of a market value of a house.

Furthermore, remember earthquake is around the corner. This makes buying existing houses even more risky--don't pay a premium over a land value!!

If government puts money in building new roads (six lane road to Hetauda, Banepa, Dhulikhel), I doubt people will have incentive to live in a god forsaken city where there is so much pollution and a perpetual water crisis.

As for commercial prospect, if city center mall and other malls themselves are facing crisis, what can an isolated house next to the mall offer in terms of business prospect?

Land, Bulding and Gold are the most valued long-term assets in Nepal. If I had 200k money that I could invest in (specifically in Nepal), I'd definitely invest it in either of those three - the former two would get my priority even more because the market has almost reached its low.

But the question is, why are you wanting to sell your house? 5 years from now, there's no way you could imagine to buy the same land/building for 3 times as much, especially in Kathmandu.

 Reading the same shit here that we discussed before in Sajha. People desperate to sell their house/land. Pretending they are selling not out of desperation but for reallocation of resources:)

And Messiah-- it is people like you who don't have money or people like those who are running ghar dalali website or those who stand to benefit from trade who think one should buy a house now. And a news flash for Messiah: there are other form of assets than these three.

One more thing: in speculation markets, bulls make money, bears make money, but pigs get slaughtered. So, those who started this speculation way back make money. Someone like Pire who believe the land price will go down and is holding his money will make money when he eventually buys. Pigs, who wade in in between , those who bought land when it was at the height of its price or those who sold when it was too low in panic, are going to be slaughtered big time.

If you have money, be patient, this land market is going nowhere but south, and until you see report of increased land revenue, or similar other signs of bullishness in market, keep your money, and enjoy your interest. You won't lose anything. Bank interest rate is too high to waste it on useless houses/land.

Pire Ji,

Both yours and mine are speculation I presented rosey side you presented another side, only future will tell which one of these two situation will prevail

1. If the inflation stays flat next year that means arround 0 % inflation bank rates will go down. Bank rates and inflation go hand by hand.
bank rates are usually  slightly higher than the inflation in a honest economy. So if inflation stays flat you cant make that much money by depositing in the bank.

2.On this point I tend to agree with you,I didnt know you can buy a mansion  for half a million. I  am not in US, but I bought a house 2500 sq ft for half a million US dollar in my place, which is considered as a middle class house. looks like I should imigrate to US

3. I dont see any rosy picture for stock markets too in coming two years so  investing in real estate or stock market in Nepal wont make any difference BUT you know how shrud are Nepali businessmen, so security wise real estate might be a safer place for peace of mind. KTM is sorrounded by hills there is  no room for expansion of KTM, So when situation becomes good, stock market will go up, real estat prices will go up BUT in nepali context real estates have always beaten stock market

3. There is always a difference between commercial real estate and residential real estate. Yeah that house may be rented for 25 lakhs BUt who will pay 25 lakh in recession? that is possible only economy is growing in a healthy percentage. But small commercial places will always be rentedso continious flow of money. and Location is most important thing, if you want to go outside KTM it is fine, but inside KTM it is very very difficult to find a safer neighbourhood people just dont want to buy house anywhere but where there is good transport, security, etc so yeah people may have more money then when demand is high they need to pay more price for same thing. You may have 5 karod in 2 yrs time but then houses in good place will go up too, when situation is good, and paying rent for a good house for two years also cost some money.

4. Two yrs back I sold 4 ana of land in the same place in 40 lakhs/ana and now in that area only my natedars place is for sale.

stiffer

I agree real estes in ktm is artificially elevated i think of two reasons a) because of new Nepalis ( those who became rich overnight) and b) physical limitation of KTM I think there is no more land left in KTM

Syanjali ji

aba photo ta mero realives le deko chhaina teskaran kasari halnu, master ko income chhaina bhanne chhai ma pattaudina, Tuion padauna pacrha, paisa falafal, alchi namani kana tution padauna suru garnus

Lahari ji,


tapaiko idea ta thikai lagyo except 2 ta srimati bya garni, maile aja samma  euta garna sakya chaina, duita srimati le feri milera paisa ko love ma tapai lai dhusno banaulan ni hos garnus hai

Nepbay

I will inform it to my relatives

Disclaimer: I am not an economist

Newstudent, I can't fathom your scathing attack me. I merely stated my opinion based on my knowledge. You buy when the market is low, and you sell when it is high.

Forgive me for not being a P.HD in economics.

Ngarikreport ji

Thank you for your thoughtfull input

messiah ji

it is not my house, my relatives, they dont live in nepal, already settled  abroad and they have no plan to return to Nepal


newstudent ji

I think there is some relation between inflation, purchasing power and value of currency, when inflation is in double digit currency will lose its buying power, Real etsate have shown a correction, in bad days land and house outside core area will do badly but those in centeres wont be affected that much. That is why commercial real estates  are more profitable than residentail ones and if you have commercial real estates in city center it is like Porche.