If you believe that all bubbles are created by RATIONAL reasons and causes taken to IRRATIONAL HEIGHTS, welcome to the post. Is Mumbai real estate terribly high and unaffordable? Yes. Let us come to some RATIONAL reasons why people buy: 1. If we do not buy NOW we will never be able to buy in […]

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Amazing what the 2003-2007 boom in the markets have done to people! Many people have taken their income from 2001-2007 and are extrapolating that growth over the next 20 years, so some of them are hoping to retire on a salary of Rs. 3 crores a year – at least that is what the excel […]

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    Set A: Statements we make: ‘Hdfc Top 200 is a fund which is DOING well….     Real estate prices ALWAYS GO UP in Mumbai……. Gold prices are GOING up….             Real estate prices are GOING up…. Equity markets are DOING BADLY….. We hear and make these statements, do we not? What we mean is ‘Last […]

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In the 1960s if you wanted to buy a house, it was considered almost impossible to get a home loan. It was only in 1980 that Hdfc started giving home loans – and that too sensible amounts. That explains why Hdfc is so popular – people love the guys who gave them the HOME. Especially […]

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Real estate prices are rarely rational! It is just that there is not enough information available in a well organized manner, and people are resistant to change. Take a city like Mumbai. It is impossible to set up a barber shop, an inexpensive eatery (I mean selling dosa at Rs. 50), a general practice or […]

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A few days ago I did a sarcastic article on ‘how real estate prices cannot fall at all’….now I am contradicting myself! Two different stories about real estate deals: One person bought in a upcoming luxury project in year a 4bhk house for Rs. 112 Lakhs in dec 2006. In 4 years time, a self […]

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  If we are all so sure that there will be volatility in the world, we should all be buying gold, correct? Yes of course… So just go and buy it…why the delay? Well you may not have money to buy gold. Now a simple solution exists, leverage. After all we leverage to buy real […]

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