Archive for the 'Real Estate' Category

Is your housing cost hurting your retirement?

Have you ever realized that in India when you pay an EMI there is very little towards principal and much more towards interest? When you are say 30 and you go and get a big, big housing loan, let us look at what really happens. You are young, confident, and your wife (and everybody else!!) […]

Why you MUST buy Real Estate…

  I am sure you rubbed your eyes when you saw this heading….that too on Subramoney.com (the world believes that I am a RE hater, so be it). Let me tell you WHO should buy RE, how much, and with how much leverage: Assumptions: You are a 48 year old male with a CTC of […]

What a Real Estate Broker says: But what it means

Have been in the RE market for the past 5 months trying to buy a house. Obviously unsuccessfully. However in this period I have met about 5 brokers and they are all SIMILAR in what they say. Mostly they take me to a fellow broker (funny?) who represents the seller. Here are some of the […]

Real Estate a Fantastic Investment?

Is real estate a fantastic Investment? If yes, are the math tools available to prove that? If no, are the math tools available to prove that point of view? The jury is still out there to judge these questions and there are no clear answers. However I found an article in the Times of India […]

Real estate bubble in India?

Of course there is no Real Estate bubble in India. This is what the builders, the govt of India, RBI, the Chairman of the biggest housing finance company / bank all of them tell us. Why do they tell us? Because if suppose property prices fall 40% in Mumbai….what happens to the balance sheets of […]

Pay off debt or Invest for Retirement?

It was in the year 200x that you took a Rs. 40,00,000 housing loan. Now 5 years later you are very comfortable with the Rs. 40,000 per month EMI that you are paying. You and your wife find that you can easily increase the EMI to Rs. 50,000 without a sweat. Should you increase the […]

Cannot sell a house? Rent it out

Many of my clients have a problem which they think is unique. This problem is called “Anchoring”. It means you have heard (or seen) about transactions which have happened at a particular price, then they expect that price for their real estate. Let me explain. I have an office space in Mumbai bought for Rs. […]