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Hi Guys,
I have been searching for a site/house/old demolishable house within the city limits for quite some time now. (Not apartment). Trust me, Its very very difficult to find a decent property. Broadly we could put them in to 3 buckets
1. Outright reject. You will not buy at any price. Unfortunately 90% of the properties fall under this.
2. Great property. You will like it the moment you see. Unfortunately I haven't come across any such property.
3. Ok sort of property. Not great not bad either.
To my surprise, even for category 3, the sellers are asking for way more than the prevailing market price. They simply wont budge. They are ready to wait forever. Contrary to what we read in internet forums, its a complete sellers market. Even though you can afford, you dont want to overpay. I am in a big dilemma. So my question, should one buy at premium price if he/she can afford it?.
Please help me with some serious advice. Also share your experience if any and how you handled it.

This depends, Its like share market!! If the you are following the trends then think twice before investment.

As per my opinion, Real estate investment should not be taken in hurry even in case of normal rates.

Its now similar to supply demand chain and some sellers are always there to test the deepness of water by quoting higher prices!!

Genuine owners, its difficult to find.

Thanks girishshk. In stock market, we have price discovery. We can see the bid/offer details with depth. But in real estate we dont have this info.
Btw this is not for investment. But for own use. I dont treat the house that we live in as an investment. Its an expense. I agree we shouldn't take decision in a hurry. But I have been searching for 4 years now!.
I dont think they quote the high price just to test the water. No matter what, they want to sell only at that price. And they dont know the simple finance. ie If they sell it at the same price after n years, effectively they sold it at a lesser price. (Assuming 7.5% per year as opportunity cost).
Anyways coming back to my question, what should one do?. I found that buyers have no say it all. Its dictated by the sellers and brokers. Is it worth paying the premium price?. Please share your views and your experience.

HI,

Good properties with good title, location, acceptable size and definitely hard to find, moreover, with a decent seller within the city limits, always comes up with a premium price. There are more buyers for this type of property and is sold like hot cakes. If it is for an investment, may not be advisable and if it is for self occupation, then, worth it.

We have witnessed this paradox for the last 15 to 20 years and of late good properties within city limits have exhausted.

Best of luck,
EP Team

Thanks ecopackindia. Agree with you that its hard to find. But I dont think they are selling hike hot cakes. Sometimes it takes years for the seller to close the deal. Also, I dont think there are more buyers. For properties priced at > 3cr or even > 2cr, the market size is not big. ( In fact as the ticket size increases, the no of potential buyers decreases).
I would appreciate if you any of can share your own experience in dealing with such situation.

Hi,
My take on buying any property is based on if you are looking it as investment or asset ( own use ) .
Lets understand difference between Investment and asset
Investment -
1. Meant to earn money out of it
2. Expected to sell when you get good price
3. Investments keep changing from time to time
4. Property/investment valuation expected to grow faster

Asset -
1. Not meant to earn money out of it instead give security on other ways .
2. To create safe future for next generation or your family
3. Valuation of an asset is of no use unless you convert in to money by selling .
4. Expected to give you happiness in using it and live in serene

With above logic i would pay extra based on my priority at that point of time .
Following the market trend is for investments not for assets, assets are purchased by passion and intrests. I would pay even more if i want it for asset as i am not in hurry to sell it and convert in to money any time soon.

Regards,
Ar.Praveen.N
Ardes Architects and Interior designers
ardesarchitects@gmail.com
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