Just saw a friend describe a house in SUBURBAN MUMBAI where some of my south Mumbai friends will not be found dead….


well it is 48,750 per sq ft. * 2875 s ft (nothing smaller available)

= 14,01,56,250 – about Rs. 14 crores + Vat + taxes + registration

lets say it comes to about 15.5 crores….

Now the average starting salary for a CA is say Rs. 6 lakhs…ok let us be liberal make it 8 lakhs…

this amount (not including furnishing) is about 200 years income.

So it means a CA will take 200 years to repay the loan. A person starting on a salary of say Rs. 300,000 (a lucky graduate) will take about 550 years.

Gross salary, net of taxes and net of personal expenses…..

Clearly such realty CANNOT be funded out of loans. Then how are they funded?

Father gifting Rs. 2 crores, father in law giving 3 crores…..the buy putting in Rs. 2 crores, wife pitching in with Rs. 1 crore…and the balance comes as a loan…then it HAS TO BE a long life of majduri.

then u have to HOPE that something like Campa Colas building does not happen….AND that prices double in 2 years.

Which means in 2 years time somebody willing to pay 100,000 psf has to come around….and the whole game wil start again!!

Mera Mumbai Mahan!

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  1. ha ha ha UP you think Mumbai prices will go down by calling Subra a SOB? good attempt lets see it if works.

    What a jerk u are..either say this is wrong or ….whatever

  2. or are u a builder with lots of property to sell…and hoping that people like Subra do not bring prices down? 5000 peopl read this blog everyday – but 100000000 people live here in Mumbai….

  3. Subrabhai, was that “buy” a typo or intentional?

    I have heard about a 7 cr apartment off the expressway… when a colleague bought it, I was more than surprised and wondered if he’d won the lottery.

  4. Thank You For The Gyan Given…..Renting is Better Than Owing.We are at peace and credit goes to our Blog..Making Smart People Richer ! Thank You

  5. Wondering what the agent must have earned(Agent myself :P).
    Well, Sir, Calculating the same salary throughout is not fair !!!
    Re-Sale of his existing flat at the same mounted price will give him lesser chance to again complain about the soaring real estate prices.
    OK,,,My turn to advertise.
    Silpi Estate
    For any Commercial and Residential Properties.
    Thank You.

  6. I don’t think these sort of apts. are aimed at the ‘aam admi’. I think only the select group of A-list-ers (some CEOs, celebrities, our mighty humble MPs/MLAs, some IT and customs folks,…) would give it a second thought.

  7. I too wonder when apts in bnglr are priced based on concept of IT folks earning around 15lacs p.a CTC, but 90% of folks around me are less then 10 lacs CTC

  8. Its ONLY matter of time when we all shall witness collapse of housing bubble which happened in US 2007-2008 in Indian/Chinese real estate market.

    What goes up “must” come down…

  9. There was rampant recruitment by government in a period ranging from 1975 – 1985. Most of these people are retiring rich with a good kitty and a wonderful indexed pension. The retirement money is flowing to the real estate market. But the music will be stopping soon as that wave is going to end shortly. Just my observation.

    The next will be the bank employees wave (clerks, managers). After that it stops!

  10. @PrAvEen, i think you misunderstood IT to be Infotech – I think VK meant Income Tax !

    @VK, you should add all the State Govt officers too like VAT/NMMC/BMC / RTO who have daily collections which have to be parked somewhere !

  11. Praveen is right.

    @Unni: As an agent, your salary might be variable. Tell me how a normal average guy will manage. Starts off with 3LPA. take into account a few job shifts + 10% hikes. Then please calculate.

    WHEN and HOW MUCH can he spare into putting a permanent roof above his head?

    Even without a lavish lifestyle, he’ll have to put in a huge chunk of salary into EMI. For 25 years.
    Don’t forget aging parents, marriage+kids, and heaven forbid unforeseen emergencies.

    The real estate market in any metro assumes people sell their older real estate for 80L and buy a new flat for 1C. What about people coming into the city from other places? Who are just becoming middle-class?

    I know people who were at the right place (metros) and right time (2000s) who managed to snag an apartment. Don’t think the current entry workforce can dream of owning a reasonable roof in the near future with current rates.

  12. What an example!!! this post has telling the truth. buying flat in Mumbai is out of the budget for the common people. 200 yrs means almost 3 times born. but Navi Mumbai real estate is good alternative for Mumbai which not exactly but will give the 50% living experience like Mumbai.

  13. indeed! Price of real estate is rising day by day and the only primary reason for this is population and secondary is changing lifestyle of human. Given example of CA is very clever way to convey actually message, thanks for sharing this article with us.

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