This is of course a brilliant headline to catch people to come to any website, right?
Well I do not have an answer to this, but hey here are the caveats as usual:
I do not trust Indices in general. After all Indices present the average, and average means NOTHING if you do not know:
How is it calculated
Mean, Median, Mode, Standard Deviation of the data.
If I am commenting with just the mean, my comments could be as inaccurate as P Chidambaram’s estimate of the amount of black money in New Delhi.
Having said that I have only the Residex of NHB to go by and my comments are based on that.
The Residex says that Bengaluru prices of property has gone up by 11% from 2007 to 2014. Hold your breath. If you invested Rs. 100 in a RE it would be worth Rs. 111. In a bank it would have become about Rs. 190.
In Jaipur Rs. 100 would have become Rs. 105. In Hyderabad Rs. 93. In Kochi it would have become Rs. 85.
How many of you believe these numbers? When I walk into a personal finance class I am bombarded with Returns from 18% to 25% in RE. Sir my money doubled in 2 years…Sir….blah blah blah
So it means all my students are a) bluffing or b) they are mathematically challenged. Right?
Now go to the NHB site and see what has really happened. Not in your imagination, or your friend’s imagination. Or in your client’s imagination.
IN real life find out how much is the appreciation. Use excel sheets to see how much returns you got.
Use pattabhiraman’s free calculator. Jago builder ke ghulam. Jago.
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