Hi guys,
can anybody help me about buying the land in Kathmandu?
Now the price is so high, so you think it is better to buy now or better to wait for next year?
I would really appreaciate for your advice.
Thanks,
Roman

I also want to buy. But personally do not think this is the right time... I will wait for few more month if the price goes down then i will buy .

i've 8 aana land on sale in Budhanilkantha,kathmandu incase if you are interested.

 

 

PR_KTM...what is the asking price for your land in BK?

i'm looking for 10 lakh/aana.

I have 5 and half anna land in Gongabu and the price is 14 lakhs per anna.

Unless you really need it, I would suggest to wait for next two years.

Aba nepal ma jagga kina Mega Million parnu parch

 Bishalnagar ma ta 30 lakh per aana re.

If you're looking to buy land, this is the perfect time. A lot of illogical fools have created a notion that if you were to wait for another year or so, the prices of land will go even lower. Guess what? Money ( wealth ) increases, land doesn't. 

With over 1,000 Nepalis leaving the country in search of employment to go with over 500,000 NRNs residing all over the world, the price of land isn't gonna go down. Sure, you might've seen that the trend of buying land and real estate has changed in recent months but its only a matter of time before people find some different way of financing.

If you have dough, go for the kill right now, don't wait to invest. If you're looking to borrow money to buy a piece of land in hopes of resaling it sometime later, don't even think about it unless you've got a great source of income. 

 I have a feeling that Agnibikram desperate needs to sell some land rightnow. Did you really get the job, dude?

Yes, people have gone abroad, and the land price has gone up by 10 times already. Banks are literally crying now. Jagga Dalals have committed suicide by jumping off from the top of buildings or swallowing metacids. They are begging with Rashtra Bank to reduce the land credit ceiling.

All you have to do is a simple math. If you have 1 crore now, you get 1 lakh per month if you keep it in the bank. How much do you get when you buy a house? Until the rent of a house goes up, I don't see how such a huge land/house price can be justified. 

And, no, NRNs who go to arab/gulf are from outside district. They send money (which is in thousands or some lakhs) to their own districts. They teach their own kids. KTM people are may be in USA, but they are unlikely to send money at this stage. Frankly, I haven't seen anyone in the states lately who said, 'oh, gee, landprice/houseprice in KTM are low, I am going to buy it rightnow.' People with that kind of money can find better houses worth investment here.

The reality is houses are not being sold, land is not being sold, and the price , using logic, will go down.

From what i heard...there has been almost close to no transactions in Land in KTM. The inner city land has not lost much value but the outer land prices has slumped almost 50%, by this i do not mean that lots of land is being sold at 50% discount. The desperate ones have sold their land at 50% discount.

Do not expect this to be the market trend as most people in Nepal buy land with Hard Cash and are willing to wait forever for the prices to come back. They do not sell till they really need to sell it. Its hard to catch the bottom as it is equally hard to sell it at the top. I think its a good time to start looking and if you find one of those desperate sellers you could nab a good value.

Remember, land price isn KTM goes up not because of economy, it goes up because of Demand and limited supply. Its a Nepali Dream to won 4 Ana in the valley. There arent enough 4 Anas for each and every Nepali who can afford it.

 You hit the nail on its head, Sidster. 

Newstudent, aren't you the same genius who said implied how a Green Card in the U.S is meaningless and how everyone living in your area ( I'm guessing Berkeley, Oakland, San Francisco ) has a GC? 

The truth to the matter is, transactions might have halted for a limited time, as it did in 2049 B.S. ( it halted for 3 years according to my parents ) but its only a matter of time before the transactions start flowing again. 

If you have money, buy land, building or whatever as people are desperately looking to sell their land and building but in 2-3 years time, you'll be repenting on what you could've achieved, had you invested in real estate instead of depositing it at a Bank. 

1 crore yielding 12 percent interest will yield about 40 lakhs in interest over the next 3 years. 

1 crore worth of land might go up to 3 crore in 3 years time and guess what, if you were to buy at an already discounted rate ( like at this very moment ), the returns will be even higher. 

And Yes, I'm working as a manager at Nabil Bank. 

Why don't you sharpen your stupid logic? "having a green card is meaningless" Idiot. 

I think it is only partially true that everybody wants to have 4 ana land in KTM. Lands in KTM are attractive, but not everyone needs them once they cease to be attractive investment. People kept on buying these lands because of the same speculation--that price will keep on increasing. Now, there will be a long slump, like Japan's in 90s. In fact, if more apartment buildings are erected, it is even more likely that people won't put money in undeveloped land/house. Lots of people also rushed to KTM because of Maoist insurgency, and it is also subsiding now. Land rose 10-20 times already in a year or two, and it is time to correct the price and this is what is happening. I would wait not only 1 or 2 years, but at least five years. I see reports of jagga dalal people jumping from the high building and small banks which invested in lands crashing down, so I can read the sign about who the desperate people are. Any man with karods in his bank balance would be at least that smart!

I also think that most of the people who have karods of rupees probably already have a house in KTM, so "I want a house in KTM" factor is already not so effective. 80% of our country's economy is based in KTM, so most of the karodpatis are there. It is unlikely that a man with a house in KTM wants more houses in KTM now as a form of investment. Ultimately, the only thing that can guarantee investment in anything is its attractiveness as an investment. Going by the price of a house in Kalimati (1 karod per ana), why would someone buy a 4 ana house that gives him a rent of 50 thousand rupees per month (with some hassle), where as he can get 4 lakh per month easily if he just puts that money in the bank? Ultimately, economic prudency should drive the market, not emotion.

Agnibikram,

So, you really got the job. I am glad you have a place to work. 

Why don't you convince your bank and Chaudhary's to buy more land in KTM? They are sitting on billions of rupees rightnow. May be you will get a good cut.

Just tell them that in three years, a land worth 1 karod today will be worth 3 karod. Nice try, genius. 

Newstudent,

"And, no, NRNs who go to arab/gulf are from outside district. They send money (which is in thousands or some lakhs) to their own districts. They teach their own kids. KTM people are may be in USA, but they are unlikely to send money at this stage. Frankly, I haven't seen anyone in the states lately who said, 'oh, gee, landprice/houseprice in KTM are low, I am going to buy it rightnow.' People with that kind of money can find better houses worth investment here"



I use to wonder the same, How do those Gulf workers who make 10 - 30 Rupees per month can possibly effect the land prices in the Capital that trades in Karods. I asked my father this question who retired after being a banker for 30 years. Here is what his answer was,

The Gulf worker saves 2 - 3 Lakhs in 2-4 years and buys a piece of land in their village. The Village Seller sells his land to multiple Gulfers and buys himself a piece of land in the Sadarmukaam, The sadarmukaam seller sells a bunch and buys himself a 4 Ana in the Valley...that is where the demand is coming from ...and just look at the numbers we have over 2 Million workers abroad just in Gulf region i think. The ones in USA, UK, Aussie, and Japan....may just buy their 4 Ana directly in KTM.

On the top of that add all the black money, Ghoos money, and hard earned money go into the Land. We do not have any industry in Nepal....all the money goes into either Gold or Land.

 Sidster,

Your logic is true, but if that process was the only responsible thing, then we wouldn't have seen 10-12 times increase in a year. Every one I have talked to knows that the reason why land price increased like that two years ago was speculation. The kind of increase we saw  before two years was due to the natural process that you mentioned.

If I were an investor, I would wait for either bank interest rate to go down or rent to go up. There is no way I would put money to speculate that the land price will increase three times in three year.

Two things: 

Real Estate is as big of a long-term investment as Gold.

And its not the ones who already have houses in Nepal that'd want to buy homes. We were having the same discussion over dinner a few hours ago, and I told my parents and a cousin that I didn't see a reason why the prices of land and houses wouldn't go down. That's when they told me about the events of 2049 B.S. My cousin also added: Population keeps increasing while the area of land in the Valley remains the same. How true is that? How many new families are starting every month? People move out, wish to buy homes, build it and do whatever. Hell, even 2-3 percent of foreign workers who've sought their trade in Gulf countries make enough money to ensure that they're capable of buying a house or a piece of land in Nepal. 

There's no freaking way, the price of land is gonna go back to what it was 2-3 years ago. It will ultimately increase.

So again, if I were in a position where I could afford to invest money, I'd definitely buy a piece of land.

The sufferers of the recent housing crisis are not the ones who could afford to invest in real-estate, its the ones who took loans to buy lands in hopes of selling it for a much higher return in 3-6 months time.  

Also, You're missing the whole point man. 

Its all about affordability, as I've aforementioned. If you can afford to invest and not worry about liquidity, this is the perfect time to spend. Chaudhary Group, Khetans and others won't waste their money in real estate because long-term assets aren't that liquid. Else, Bill Gates would've spent over 10-30 billion dollars in real-estate,too.

These businesses and banks won't invest in long-term investments because they'd rather invest it on a short-term basis that's highly liquid.  

New student,

We had 10 - 12 times increase in the span of 5- 10 years depending on the location not 10 - 12 times in a year.

It had to do a lot with the sudden influx of money into Nepal from money from foreign employment.  Land prices has been doubling in KTM since last 30 years. 30 Years ago my father bought a land for 17K per ana that sold at 40K per ana 25 years ago, 1K per ana 20 years ago. 4k per ana 15 years ago, 10k per ana 10 years ago...and 35K per ana 5 years ago. The land prices started going up way before the foreign employment money started pouring. It grew more rapidly once the foreign money came in.

Again, putting 1 karod in a bank is not a bad idea either...its a preference. Some people find more peace of mind on have their money locked into a land than in a bank due to inflation, Bank bankruptcy and Ransom issues.

Here's some economic facts that will ensure land prices will continue to outpace other returns in the long run.

1) Nepal's population growth rate is 2% a year (very high).
2) Every year 4 lakh people enter the workforce of which 3 lakh go for foreign employment.
3) Continued exodus of people from the villages to the cities.
4) Nepal's stated GDP is half of what it really is, the informal sector which is not measured is as large as the formal GDP. Ever wondered why in Nepal you don't see oceans of slums like in India? No one can account for the size or the growth rate of the informal economy although its presumed to be growing at a fast rate.

http://www.iariw.org/papers/2009/7%20Suwal.pdf

5) The composition of Nepali foreign workers is slowly morphing from a largely unskilled cohort to a skilled/semi skilled pool with the sustained rise of an educated diaspora.