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Wait! Property prices to fall further!

December 30, 2008

Prices 25-35 per cent off Peak Values

There is another way you can get a fair value of a property. "Any property which is 25-35 per cent off its peak value should be a good bargain," says Kumar.

Mavani of KMPG echoes a similar view. "If one is able to get a property that is 25 per cent off peak values, then those are options worth considering," he says.

The affordability: The affordability index published by the Housing Development Finance Corporation (HDFC) will tell you which way the wind is blowing.

Around 2004, when affordability was at its highest, it would have taken around 4.3 times of an individual's annual salary to buy a house. At present, the figure stands at 5. Thereafter, affordability levels will vary between individuals. It would depend on the EMI you can afford and the downpayment you can make.

While the downward spiral in prices is expected to last for a while, you should use this opportunity to buy a house of your own before prices start to head north once again. That is still some distance away. "Perhaps by the end of 2009 prices will bottom out," says Mavani.

Adds Kumar: "If we see a recovery anywhere around 2010 Diwali, then we would have done very well." Till then happy house hunting!

Image: The Proteus. | Photograph, courtesy: Marine Advanced Research, Inc.

Also read: This is the best time to buy a car!

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