Comments on: Rent or buy..another myth busting.. http://www.subramoney.com/2009/02/rent-or-buyanother-myth-busting/ Personal Finance Sun, 12 Feb 2012 07:29:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Narasimhan C.S. http://www.subramoney.com/2009/02/rent-or-buyanother-myth-busting/comment-page-1/#comment-579 Narasimhan C.S. Thu, 12 Feb 2009 05:53:34 +0000 http://www.subramoney.com/?p=1251#comment-579 You are trying to prove the stupidity of buying a house through sheer arithmatic calculations! However arirthmatic calculation is not everything in life. We all take insuranc policies and mentally write off that expense. Why? Beacuse there is a price to be paid for the psychological feeling of security. I use the word 'psychological' here because there is nothing like absolute security in life. You may wonder what has insurance to do with owning a house. When you own a house you are insuring yourself against several pitfalls.You do not have to go through the torture of relocating every now and then. Housewives particularly hate to do this because very often they have to bear the brunt of taking care of several small little things(and even major issues of moving like packing,repackinfg etc) and also readjusting to new surroundings,updating change of address and telephone nos to one and all etc. Add to this the problems one has to face with whims and fancies of the landlords. I do not have to eloborate this except to say that I have heard several horror stories (in Chennai) of how landlords behave. And of course,as one of the readers pointed out,the joy of doing and redoing the decor of our home and gardening(if one happens to own an independent house)withour the fear of being questioned by the landlord is something immeasurable. Things such as these can not be quantified by money! These arguments are especially relevant for people who are retired or close to retirement or self employed individuals because their "coordinates" are more or less fixed. You are trying to prove the stupidity of buying a house through sheer arithmatic calculations! However arirthmatic calculation is not everything in life. We all take insuranc policies and mentally write off that expense. Why? Beacuse there is a price to be paid for the psychological feeling of security. I use the word ‘psychological’ here because there is nothing like absolute security in life.
You may wonder what has insurance to do with owning a house. When you own a house you are insuring yourself against several pitfalls.You do not have to go through the torture of relocating every now and then. Housewives particularly hate to do this because very often they have to bear the brunt of taking care of several small little things(and even major issues of moving like packing,repackinfg etc) and also readjusting to new surroundings,updating change of address and telephone nos to one and all etc. Add to this the problems one has to face with whims and fancies of the landlords. I do not have to eloborate this except to say that I have heard several horror stories (in Chennai) of how landlords behave. And of course,as one of the readers pointed out,the joy of doing and redoing the decor of our home and gardening(if one happens to own an independent house)withour the fear of being questioned by the landlord is something immeasurable. Things such as these can not be quantified by money! These arguments are especially relevant for people who are retired or close to retirement or self employed individuals because their “coordinates” are more or less fixed.

]]> By: Pooja Chopra http://www.subramoney.com/2009/02/rent-or-buyanother-myth-busting/comment-page-1/#comment-576 Pooja Chopra Wed, 11 Feb 2009 10:02:03 +0000 http://www.subramoney.com/?p=1251#comment-576 I am totally puzzled after reading this blog. What do I do with the thoughts of building "MY DREAM HOME" (which is currently under construction) - the one forever! I think if it's your home, you can add to it, redo it, do whatever you want......!!!But I am a lil confused (after going through those calculations).....with no specific answers at the end....as always!;) I am totally puzzled after reading this blog. What do I do with the thoughts of building “MY DREAM HOME” (which is currently under construction) – the one forever! I think if it’s your home, you can add to it, redo it, do whatever you want……!!!But I am a lil confused (after going through those calculations)…..with no specific answers at the end….as always!;)

]]> By: Hitesh http://www.subramoney.com/2009/02/rent-or-buyanother-myth-busting/comment-page-1/#comment-573 Hitesh Wed, 11 Feb 2009 05:12:22 +0000 http://www.subramoney.com/?p=1251#comment-573 I completely buy this principle I have just done this analysis long time back When I had strong Urge or PEER Pressure to buy an home I assume If I take 30Lakhs loan for 20 years or I rent in a home for 8000 pm/ which goes for 10% escalation every month & 10000 Rs every year if I move or been asked to move every year because of any probable Issues Even If I consider the Tax benefits of 1.5 lakhs per month & Invest the difference of EMI-Rent to Equity with a 18% Return on yearly basis -I will have 2.5 Crores extra & I have not considered the benefits of 5-6 lacs which I have to pay as a downpayment & for Frnishing the house Even If I considered that It will be 4 Crores & there are endless benefits of having a freedom to move any city , any place , live next to Office , enjoy the spare time which is priceless so end is good & the money I saved & earned form that will be used to buy some cottage in Hill Stations:)this is a wishlist I completely buy this principle I have just done this analysis long time back When I had strong Urge or PEER Pressure to buy an home

I assume If I take 30Lakhs loan for 20 years or I rent in a home for 8000 pm/ which goes for 10% escalation every month & 10000 Rs every year if I move or been asked to move every year because of any probable Issues

Even If I consider the Tax benefits of 1.5 lakhs per month
& Invest the difference of EMI-Rent to Equity with a 18% Return on yearly basis -I will have 2.5 Crores extra

& I have not considered the benefits of 5-6 lacs which I have to pay as a downpayment & for Frnishing the house Even If I considered that It will be 4 Crores
& there are endless benefits of having a freedom to move any city , any place , live next to Office , enjoy the spare time which is priceless

so end is good & the money I saved & earned form that will be used to buy some cottage in Hill Stations:)this is a wishlist

]]>