Prior to World War II most people in the world were happy living in rented houses. This gave rise to concepts like ‘pagdi’ where you paid a sizeable deposit and a small rent. Mumbai used to be full of such properties . In fact this gave rise to sayings like ‘Fools build (buy?) houses, Wise men live in them’ … but I am not sure of the context …
Then the myth of ‘you must own your house’ was beautifully spread – and the great middle class dream of being a house owner was started. Over the past few years property prices adjusted to inflation (and interest) have done well. However it could be just part of the asset boom of 2002-7, then the fall in 08, and the rise in09. The Americans (also under the same sales pressure from cement, steel and housing finance companies) have not been so lucky. Most of them have had their pants taken off in the recent crisis. However the learning is not much. Most people anchor to their price, do not know how to calculate the cost of the house, do not know SIP returns (as a benchmark)…this is not my lament, The economist says so…read on
and while on the topic, there might be some of you who believe that real estate cannot fail. Or even worse ‘You can NEVER lose money on real estate..well for such people, here is a note
Post Footer automatically generated by Add Post Footer Plugin for wordpress.