If you have followed my posts regularly you would have seen my posting regarding owning or renting your house..to which I have received violent protests. Here I am replying to the protests…
“Own houses can be bigger than rented ones.”
That is funny. You can rent a bigger apartment can you not? Most renters live in single-family houses. I prefer a 2 bedroom hall kitchen apartment for now. I like not having to fill it with stuff. I like using a fifth of the energy of the average person. I like being 10 minutes from work and (this is unique to Navi Mumbai) not having gone to office EVER in a car in almost all my working life. I am frugal. The current book I am reading is “Enough” by John Bogle, one of my all time favorites is “To have or to be” by Erich Fromm. I spend a teacher’s salary each year on restaurants and travel. But I guess I’m too busy or lazy right now to bother with a big ‘own’ house and society meetings.
“Should I sell my big house and rent a small flat instead?”
No heavens sake no. No, unless you have more space than you need. If you have fallen for “you buy a house only once, so buy big” call by your broker, then think again. Do not move if it will disrupt your family. If your spouse, kids, and others have got used to a neighborhood do not move. I am frankly not here to convert people to my line of thinking. It is not in my interest either. I want you to consume more cement (I own shares of Grasim and Ultratech), more steel (Tata Steel), travel longer to your place of work (Tata Motors), borrow money to buy a bigger house (Hdfc) – and smoke (ITC) to relieve your stress. As long as my dividends are greater than the rents that I pay I am personally happy!
Completely from another point of view this “I should own a house” – it is an Indian dream (you can say American, Japanese, ….anything you want to say) keeps house prices high – and rentals low. I benefit by the later.
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