Nashik property prices – Real Estate boom in Nashik city and surrounding areas3968875
Aus Salespoint
Nashik is attracting people from all over the world. But due to this real estate market has been very volatile in past few years. So if you are really looking for Nashik as your next investment place for real estate, then read this article carefully. It explains boom & busts and the principles behind it.
Observers who have made a study of the matter, claim that booms and panics occur in cycles.
Professor Levi says : “The most confident advocates of the theory of periodicity assign to these cycles a definite or nearly equal duration of ten or twelve years.
According to John Stewart Mills, this cycle is divided as follows : After each panic or crisis the first three years will witness diminishing trade, lack of employment, falling prices, a lowering rate of interest and very considerable distress. Then will be three years of active trade, slightly rising prices, fair employment, improved credit. Then will come three years of unduly excited trade, in which speculation will be rife, prices will rise rapidly, and an unusual number of new enterprises will be begun. The tenth year will be one of crisis, followed by three years of depression.” (Burton’s Financial Crises.)
The following is from a paper sets forth in striking language the leading features of booms and panics : A boom is a convalescent panic. A panic is a bursted boom. The business interests of the country are always either on the up grade or on the down grade. The credit system for the transaction of business is responsible for both the boom and the panic. If all business was done on a cash basis, there could be no panics ; neither could there be any booms.
A boom is a speculative condition of the market during advancing prices. A panic is the condition of the market after prices have reached the highest point possible, and have begun to recede. If no one was in debt for his property real or personal at the time that prices began to drop there could be no panic, for each individual would still own his own property and it would make no difference to him whether is was worth one Lac or five Lac.
If, however, he owned property valued at five Lac and was in debt for it to his neighbor to the extent of three Lac, and its market value should drop to two lac, it would require the entire property and an additional one Lac to pay the neighbor, and the man’s interest in the property would be entirely wiped out.
This would be a panic for the man in fact it would be pretty near a panic for both of them.
Panics and booms are governed by the law of supply and demand. During a boom, the demand exceeds the supply; during a panic, the supply exceeds the demand. There is a general feeling, however, when prices are very low and times are hard and there seems to be no bottom to the market, that the world has reached a point in its history where prices can never come up again.
