Hello biz and land experts,

 

If anybody is looking to buy land in KTM or its surroundings for investment purposes,

where you all think is the best place to buy land at? Apart from same political news and Bs, lets discuss and share our ideas with each other which could be useful to somebody.

Thanx inadvance

some ideas plz

Your discussion topic indeed is good but you are in wrong place.

I am not an expert on this,but I believe it is too late to invest in land/house in Nepal.If you compare price of house in Nepal and USA,it is now cheaper in USA.And comparing facilities and earning,would you think it is worthy to invest in Nepal? I don't think so. Sooner or later Nepal will face huge financial and banking crisis and mimic US morgage mess.I wish I could be wrong..

 

Please do not let your emotion lead your financial decision.

Just my two cents.

 

I totally agree with database.....

the thing that he mentioned is bound to happen in the near future
the exact same thing happened in india with the  real state

the sudden rise of prices of real estate is not a good thing at all.......

keep a close eye on the prices though if you have property of which the value has quadrupled or more overnight...sellem before the market falls.....

I'd say rather invest in gold....the safest bet
the returns might not be as high compared to the real estate but still it will be a hefty return

Nepal's land price is up due to people's real power to buy because all of them are purchased on cash. However, US real estate price was up due to inflated credit and buying power without people having real power to own it.

Therefore, land price in Nepal can go down a little bit but it will not be a mess like in the US for sure as far as my analysis is concerned.

elixir, as i have heard, for couple of years now.. most buying/selling in ktm DO involve banks for mortgages.

Investing in land is very good idea however if you look at the market  it looks bit sluggish at the moment but I am very much optimistic that the market will recover soon. Nepal is a developing country and I dont see gloomy future in land investment.

I think other rock solid investment is fix deposit. I would be better off if I would have done fix deposit the sum I invested in land last year. some banks are paying up to 4% APR if you deposit over $50,000 so I am thinking of bringing my money back.

I also believe that the real estate will soon go down in KTM. However, the impact may not be as bad as in US. There are still thousands of people migrating to the capital from outside KTM and the trend of people going aboard for employment has not slowed down. Having said that, the value of the property in KTM right now is just ridiculous. With uncomparable annual per capita income with US, the real estate is actually more expensive than US. The math just does not go along. How could so many Nepalese people afford to buy such exepensive properties?

Elixir,

      "Nepal's land price is up due to people's real power to buy because all of them are purchased on cash"--Eilxir said

        With due respect to your view,I totally disagree that Nepal's land price is because of people's real power to buy.How can that be true where 50% of all Nepalese bank' investment are mortgage related.If you recall few months back,there were increase in inter bank lending in Nepal and rate was 9 to 10%.

  For the last few years,Nepalese bank were overexposed to mortgage and those assets will become toxic very soon.Nepal will face huge financial and banking crisis soon.Again,I wish I could be wrong because I do not think my lovely country is in position to handle yet another mess.

    Please feel free to disagree.

I agree with Elixir.

I  agree with Elixir's note that most property  transactions in Nepal is dealt through cash. The ones that borrow heavily from the banks are the apartment builders. On average only 12 percent of the total lending is done in real estate. Borrowing from banks usually involves collateral and individuals can only get upto 60% of their collateral's value in the form of loans.

Also, last year Nepal received 209 billion rupees in remittances through official channels.

http://www.thehimalayantimes.com/fullNews.php?headline=Global+recession+Impact+on+Nepalese+export&NewsID=48523

A lot of money also enters the country through unofficial methods and the total sum of remittances may well have been over 300 billion. This year again, we're seeing a robust rise in remittances as more and more Nepalis go abroad in search of greener pastures, especially to lucrative destinations like North America and Western Europe.

I think real estate in Nepal will continue to see long term growth. This will happen because people are migrating to developed countries more than ever. Only this year about 11,000 Nepalis came to the US for further education. A similar number went to the UK, Australia and Western Europe. Almost half of the remittances entering Nepal is invested in real estate, and all  of it is cash

http://www.ngcci.org/index.php?nav=resources&page=ecoglimpse&id=913

With the decline in the share market, this sector will continue to see more investment and values will rise as there is more urbanization fueled by insecurity and remittance growth.

Don't listen to these anaadis who have no idea what economics means. Invest in real estate.

haakim_saab,

                 With due respect to your arguments,I would like to differ you.With more than 10 times rise in real estate market already,would you still believe that there is potential to grow real estate in long term.You seem like expert in economics(As you are pointing others as Anadi),how do you corelate rise in real estate where political situation is in  limbo and foward looking indicator of economy,the stock market in bear phase and GDP has no sign of any extraordinary improment?

                   Which financial tools will support your argument of long term rise in real estate in Nepal?

Do not forget 60%  fo collatoral is high leverage ratio for economy like ours..

Please feel free to disagree.

It is your money and use the way you want.I was just sharing my thought.

  

Nepal's real estate market has already started to dry.

http://www.nayapatrika.com/newsportal/finance/9262.html

It is wise to wait couple of years to invest in land in Nepal.

Just 2 cents.