First he shows how you can save money over 20 years if you live on rent. Then there are series of assumptions. Then he talks about benifits of owning a house. What's the point? What's the conclusion? Do we buy or do we live on rent? This article is certainly detrimental to personalfn.com. No body wants indecisive advices !!
He wants to show that though you can save money from staying in a rented house, you should opt for buying one, because it will be more advantageous over the period.
If you don't understand what the author is trying to say, you should not comment on him.
RE:[object]
by drunken monk on Apr 30, 2007 06:23 PM Permalink
archana, so u know evertything? thats what gayathri explains that she could not come to conclusion out of the article.
The article is intersting . But we have to view other angle also. Buying a house is add lot of thing. For rented house constant shifting will distrub all the members.So a stabilty is required to estabish. 2 Owned house add a reputation in public 3. building a house affect the liguidity and is forced investment. But we have to see the capacity for repayment 4. The value of a house may increase with unpredicatable rate but luck factor is there
so a trade of required by my view is building a house depending upon his capacity is good gopalakrishnan thrissur
You go through any newspaper we hear property prices are falling.This is not at all true.Inspite of interest rates rising on home loans you can ask any builder and he would say property prices wont fall in the next 5 -6 years. They have almost more than doubled in last 3 years.
RE:We here all these nonsense of Property Prices falling.Are these true
by karthik on Apr 30, 2007 09:44 PM Permalink
Very true, it is just that the property prices are not appreciating as it was before, it has more or less stagnated, still beyond common man's reach
i am getting a salary of 10,000/- in our city a small apartment of 800 single bed room costs 20,000/- can the author tell me what is the best source of buying a house, i am paying a house rent of 2,500/- for single bed room flat and my house is 15 km from my office, distance doesnt matter. can any one tell me to go for buying house or to stay on rent
RE:cannot understand the figures
by Freek Guy on Apr 30, 2007 05:58 PM Permalink
I think the best option for you is to jump from the city and find another job somewhere that pays off better. If you have obligation to stay on, then please dont go for a housing loan that will eat into ur pocket. Always keep your EMI's below 50 % of your earning. Esp if you are married and have a family to take care of, dont take up hard EMI's. What if you lose your job at least for some months? If you are a bachelor, then you shud be kicked to stay at Rs.2500/-. Go below Rs.1000/- for rent
your article has a major flaw- you have not take into account the amount that will be spent on relocating every time the landlord kicks you out of the house (in Mumbai may be once every 11 months).also consider the mental agony of finding a favorable location for a new home every time...and what about the brokerage you pay to the estate agent for finding a new house?
If it the case of buying apartment, what ever author says it is right. Because, life period of an apartment is 40-45yrs. This will not be applicable to the Independent house i believe.
RE:house on rent or own
by Deepak Jain on Apr 30, 2007 05:55 PM Permalink
I think there has been a fundamental error in this analysis by comparing expenses to capital costs and no mention has been made on the terminal value of the property in the second scenario. A more suitable analysis is comparing the rental yields to sales value to ascertain wheather the sales values are optimum or not...typically rental yields should be 5-7% of the total purchase price...if less...then the property is overpriced...if more then underpriced...yield is your annual net rent divided by total purchase value.
RE:Wake Up
by Asthana Neha on Apr 30, 2007 05:52 PM Permalink
A house with a value of 2.3 caroor. It's rent in mumbai is acc less @ 13.5 Any how who knows tru picture. But nicely illustrated.
RE:RE:buy a house or stay on rent
by Ritesh Chakravarty on Apr 30, 2007 06:16 PM Permalink
Dont call someone idiot. People have individual mind to think and anlyze. You can better invest the money in Mutual Funds to get better returns. Even, maintaining a house is also costly, you need to pay taxes also repairing costs which you dont have in rented house. If you buy a house and stay like a beggar for 20 yrs, after 20 yrs, you will feel that you have wasted your youth and life. Enjoy your life, spend some more money in lifestyle, invest some amount in good investment options, also invest some money in some business to get a regular income when your productivity goes down. Also put some money in insurance or pension funds. Anyway, when you die, you will not going to take your home with you to heaven. Live your life when you can live.
RE:buy a house or stay on rent
by Gayathiri HariAnand on Apr 30, 2007 06:41 PM Permalink
Well said Mahesh.Rediff should scrutinize the articles before being published. Helloooo REDIFF wake up !!!We would like to read some sensible articles.
RE:buy a house or stay on rent
by Himanshu Srivastava on Apr 30, 2007 06:01 PM Permalink
Mr Mahesh, I think you are a big Idiot. What you are mentioning is exactly what has been written in the article. You are just repeating the same thing. I think its not your fault, probably your understanding of english is weak. For your understanding I am quoting the lines from the article which say the same thing "we maintain that every individual must own property (for residential purpose), as the same has a vital role to play from an asset allocation perspective. To that end, buying a property should be taken up on priority, and discretion can be used in terms of the location and size of the property."
Read this and if again you are not able to understand then join an course to learn the english language.
