Real Estate - Painful Yet Funny Part

Buying Property Where to Buy
#1

Real estate - painful yet funny part

Once upon a time in a village, a man announced to the villagers that he would buy monkeys for Rs. 10. The villagers, seeing that there were many monkeys around, went out to the forest and started catching them.

The man bought thousands at Rs. 10 and as supply started to diminish, the villagers stopped their effort.

He further announced that he would now buy at Rs. 20. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even further and people started going back to their farms.

The offer rate increased to rs 25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at rs 50! However, since he had to go to the city on some business, his assistant would now buy on behalf of him.

In the absence of the man, the assistant told the villagers. Look at all these monkeys in the big cage that the man has collected. I will sell them to you at rs 35 and when the man returns from the city, you can sell it to him for rs 50.

The villagers squeezed up with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!

#2

So... Got the clue?

Who works like that? :)

#3

Lolzzzz…good one .

#4

Nice satire of Pakistan real estate. :slight_smile:

#5

Very true.

#6

Very true. Thanks for sharing :-)!

#7

Nice One!!

That what really happening with us.

Thanks for sharing!!

#8

Despite of knowing this; most of us are still acting like those villavers. Somehow u can relate it with greed.

#9

Just add few words in it too MBS.

Villagers bought all these monkeys and started looking after them,They stopped selling these monkeys.Sale purchase of monkey reduced but their price continued rising at slow pace now.:)Anybody who bought monkey felt wise even then

#10

@MBS. Nice one, and is applicable equally well on all speculative assets.

#11

Million Dollar question is “who is playing the role of that monkey buyer in our today’s real estate industry?”

#12

Well I see the recent price hike in real estate this way. I remember the days of late 90's when trading of stocks became familiar in pakistan.

In late 90's, KSE 100 index normally traded between 1000 to 2000.When Pakistan did Atomic Blasts in 1998, KSE 100 index plunged too 786.When Nawaz sharif's government dismissed in Oct 1999, KSE 100 index was at 1000.In those days speculation and price manipulation was very common in share trading.

Management of stock Exchange had to stop speculation as common man hurt badly by this and suffered heavy losses.

Now I feel big speculators and price manipulators entered in Real estate where common man is not looser at the end.At certain stage final buyer comes and stays in that place by making home.

What these speculators need to do is to find out the places which well planned and professional builders are building. BAHRIA, DHA etc fulfills their requirement. Now what they have to do is to increase the price to such an extent where normal buyer can afford to pay.Once that point would be reached, they will quit investing and increasing it and will find alternative scheme

Just keep in mind every property is not rising.only properties with bright future is rising and will continue to rise till speculator and common man involve in it.

Another question coming in investor's mind is, is it bubble? will it burst soon.?

I don't think so.It could remain stagnant or bit down (those ones which are on the map only) in the absence of buyer.Once buyer would come again, these speculators and investors will get active again to increase the price of that place which will be in demand.And there will always be demand for better housing specially in this country's law and order and macro economic situation.

#13

@ Arshad; I agree with u. Speculators did lot of things in karachi stock exchange including the creation of worst crisis of 2003. Speculators are those people in Pakistan who has lot of cash available to manipulate the things. Unfortunately this mafia do not invest in industries to create job but they only invest in such places where they dont need to do anything. Money brings more money for them.

#14

@Arshad

you completed the story very well with that :)

"Villagers bought all these monkeys and started looking after them,They stopped selling these monkeys.Sale purchase of monkey reduced but their price continued rising at slow pace now.:)Anybody who bought monkey felt wise even then"

#15

The speculation business is successful in all poor and troubled countries, though not sustainable.

Other examples are east and north african countries. To me, the prime reason for that is the investors do not find genuine business opportunities coz of power, security and political crisis. So it becomes a big risk to put in big infrastructures/factories and then fall victim to power crisis or political "bhatta"

On top of that its "easy money" - ring a few numbers n collect ur pay orders

#16

@MBS; I agree with u. Its easy money thats why speculators choose this biz.

#17

Very funny MBS…

#18

Very Nice :slight_smile:

#19

Cheers bros! :slight_smile:

#20

This business will continue. With weak rupee, growing population, shortage of housing and law and order situation, more and more people will go to genuine societies

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