RBI’s rate hike…actually nothing happened!
My heart goes out to people who run television channels, magazines and websites – the constant search for news is not easy.
Let us take the RBI rate hike which happened. A 0.25% increase in the Repo rate is actually not such a big news, but if you have to write about, it, well, you have to write about it.
‘RBI announced a 0.25% rate hike..and there is nothing for us to talk about’ – cannot be a half hour discussion on a panel can it?
So we met and ‘discussed’ how real estate prices will go up, how people will not be able to afford houses…because interest rates have gone up, how there is no asset bubble building up (at Diwali people have to feel good, how can we say vested interests are jacking up real estate prices and make them look foolish about their Rs. 2.3 crore purchase which is now worth Rs 2.9 crores in 4 months time?)…
So generally after all this…we said ‘All is well with the world, on your Rs. 20 lakhs salary please commit yourself to a Rs. 3 crore house – which will become Rs. 5 crores in 2 years time…and generally feel good.
Do not read subramoney..and ask yourself ..If I am buying a Rs. 3 crore house with a Rs. 3 crore loan, and if I calculate the EMI by the number of months that I will pay, why is the cost of my house Rs. 6 crores?
Or on a Rs. 20 lakh salary if I am committing to a Rs. 6 crore house – WHY the …am I committing to myself – or forcing myself a 30 year ‘MUST WORK’ clause. …..hmmmm pondering is not allowed, happy Diwali 🙂
Ravinder Makhaik
After the talking heads had finished, Subra reflected what had just been discussed and is disgusted with the futility of it all – for it is Diwali and bad news is prohibited.
Incidentally, for this Diwali I made a substantial pre-payment on my housing loan and should get rid of the lingering pain called EMI by March 2011.
🙂 Happy Diwali
Pooja Chopra Goel
Extremely amusing!! 😛
Pooja Chopra Goel
Statutory Warning: Read `Subramoney`at your own risk 😉 Chances are you’ll end up feeling like a fool with zero money sense! 😛 (In most cases that’s true… Sad but true…)
Anyway, Happy Diwali! 🙂
subra
too many Poojas in my life bashing me up..so join them! did u see on FB i am connected to 6 of them….
JFKSLZ
Sir
Last two paras are very much my thoughts these days.
Currently Iam under emotional pressure from my better half on buying a house.
Iam also looking out ,yet not able to commit my self for these very reasons….
Buying or not Buying that is the question 🙂
Buying & forcing myself a 30 year ‘MUST WORK’ clause
Or
Wait,Accumulate & Build wealth to come out of RAT RACE (Yes.. influenced by Rich Dad,Poor Dad)
PS :- Hoping to see you @ DADAR on 9th