Thursday 10 March 2011

Property, a Dangerous Asset

Property, a Dangerous Asset????

Property as an investment. Does it make sense? How risky is it? Here is a view, obviously focussing more on the western world:

How dangerous is it in India? As always, there is no single valid answer.

If you're picking up a property at an inflated price at a "well-discovered" location, like, say, Nariman Point, Mumbai or Boat Club Road, Chennai or Park Street, Kolkata, or MG Road, Bengaluru, obviously, it can be a dangerous asset class.

However, if you're buying a piece of farm land where the annual yield per acre takes care of your EMIs for any loan that you may take for purchasing such farm land (as many interior parts of India do), chances are bright that buying property in such places is certainly not a very dangerous thing to do.

Ultimately, one ought to look at the Class VIII lessons on probability, Expected Value, etc. and do a quick calculation of the potential returns and the probability of such returns before investing.

Whether you're investing in property, precious metals, commodities, art, wine or whatever!

Regards,

N


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Tuesday 8 March 2011

Real Estate Documentation - Virtually Unreal!

Real Estate Documentation - Virtually Unreal!

So, you thought that the property records and real estate documentation is in a big mess in India ... ... ...

Relax! Apparently, things are pretty bad out there in USA as well! Read on:

Regards,

N


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Wednesday 2 March 2011

Spending Habits of Americans - And learning what not to do from them!

Spending Habits of Americans
And learning what not to do from them!

Take a look at this article based on a survey of spending habits of Americans:

Very revealing, indeed. Makes sense to learn what not to do from them, I guess!

Among other things, according to the above article, Americans spend more on an average on tobacco and tobacco products (cigarettes, cigars, pipes, chewing tobacco, etc.) than on Fresh fruits and milk combined. It is worth noting that the average has been arrived at by looking at the TOTAL population, which, obviously, includes ALL the families that don't spend a penny on tobacco products. Whereas, presumably, ALL families would be spending something on fresh fruits and milk, virtually on a daily basis.

Some food for thought, I'm sure!

Regards,

N


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