Home Loan Crisis in India 📈

I have put lots of my liquid money into P2P lending and get 1k daily from cred mint, mobikwik xtra and 12%. Reason- My bank pays interest which hardly can beat inflation. Question - Where should I park my liquid money ? PS - Markets at high and real estate is bound to crash.

If you really want to invest in real estate, buy plots and not flats at these inflated price

With big corporate giants like Google, Apple, Bain, Tesla, Amazon etc. laying off staff in the name of cost reduction, automation&innovation and restructuring while at the same time tech companies like Accenture not awarding any yearly hikes to professionals for 2 consecutive years now, where do you see the IT/Tech/Consulting industry heading towards in next couple years down the line? By when is the market expected to revive? Which companies are still committed to ensuring job security along with high pay standards or is that a thing of the past? Please enlighten me😊

Saw a similar post somewhere from an European and I think it’s pretty valid for India. For context, I am in my early 30s, a home owner, living in tier-2 city with a pretty high salary. Recently got married and my wife also works as an Enterprise AE for a listed US company. Our cost of living is pretty low given the house and tier-2 city. Even if we had a kid, the overall cost of living will not change a lot. I got to where I am, economically, by a combination of hard work and luck. Luck definitely was a huge part of it. Knowing the right people at the right time, working on the right technologies helped a lot more in advancing my career a lot more than grinding for good grades. Even the ability to buy a house without much debt, was partly because I was lucky to sell my shares in a fairly small startup. It would be easy to say things aren’t economically bad based on my own experience or that of my close friends. However, when I look at things more objectively, I can’t help but come to the conclusion that we are screwed as a generation. Except for maybe the top 1%, salaries are not keeping up even with inflation. Housing costs, specially in tier 1/2 cities are unbelievably high even if you want an average apartment. Jobs are no where to be seen. The whole generation is living in the hope of the stock market rally never ending. This seems completely unsustainable as a nation. I might be doing well for now, but I still recognise how these are real problems for most Indians, who’ve been waiting for India’s century for 20 years Given that the services industry contributes more than 50% to the GDP, the current state of joblessness, the overall sluggishness in IT and related sectors, and the fundamental changes happening to the way IT services now work, I wouldn’t be surprised if we see a complete recession in the next 4-5 years. Lately, there has been a lot of criticism of anyone expressing anger on how bad things are but I think it’s helpful to talk about this.

We've witnessed so many layoffs in the past year and this continues to be an upward trend. Bangalore is a city of IT professionals and these layoffs seem to have no effect on the real estate. Is this because the numbers are negligent? I don't think that's the case, my company has been laying off people since last year. It was never public. I'm sure there are lots of such companies. What are your thoughts?!

- Home prices in India are set to rise steadily, driven by demand for luxury properties from wealthy individuals, according to a Reuters poll of housing experts. - Economic growth benefits are increasingly being funneled to a select few, leaving millions of job-seekers out of the growth story. - Aspiring first-time buyers are forced to keep renting as affordable homes dwindle and cash-rich individuals corner the property market. - National home prices in India are expected to rise 7.75% this year, with further increases of 6.0%-6.25% in the next two years. - Developers are focusing on luxury housing projects, aligning supply with prevailing demand, while affordable housing continues to suffer. Source: [Reuters](https://www.reuters.com/world/india/luxury-property-frenzy-set-drive-up-home-prices-india-2024-09-03/)

Liabilities and high interest loans rising, household savings falling. It's a very worrying statistic if people are borrowing money just to stay afloat.

These days, I can't help but keep on thinking about post white collar labour economy and it's implication on our day to day life.... We can keep on dwelling in our wishful cocoon but fact remains that world is going to be vastly different in 4-5 years vis a viz today... In that scenario, let's us discuss some scenario : 1. What will be impact on rental yields of tier 1 cities and consequently what will be overall impact on Indian real estate 2. What would be impact on banking interest rates 3. Where will you park your money in that scenario : Gold, Indian Equity , Big Tech Equity , FD, Real estate or Cash.. My opinion : 1. As high paying jobs for majority of people diminishes, Rental yields of tier 1 cities will come down thereby directly impacting real estate. This will result in huge NPA by those people who have taken loans for 20-30 years period. This will eventually bankrupt real estate developers thereby making real estate deflationary. 2. We will begin to witness overall a deflationary society where cost of services like Education, software, finance etc will drastically reduce. Moreover due to high NPAs, banking interest rate will reduce. Home loans for tenure of 20-30 years will drastically reduce due to increased uncertainty. 3. Gold has historically been inflation proof asset. However will it still be a good asset to invest into in a deflationary society? What are things that will still hold value then? Don't you think current big techs will become East India Company of future indirectly controlling world's economy? I would love to know what do grapevine folks think about the same !