Honestly KS you are not right or wrong, just our definitions dont match. To give you an example, if you rent a flat (as some brainwaves are suggesting now) you will be better off in good and bad times than own it. Ownership ofcourse gives u the right to live and trouble free from the owner of a rental property.
Appreciation does take place over time but it wont even set back bank interest very often. To give u a live example in Bangalore. Flat bought in 1998 has appreciated by 2 to 2.5 times in value. Rental value would have given some 6% p.a. in the past 10 years. This I dont think is great investment but great life to live in one. Incidentally finding a tenant is an activity and finding one continously is a worser one. So I wont disagree with you fully but the view is BUY FLAT TO LIVE, BUY LAND TO INVEST, inbetween it is just FUZZY LOGIC.
Honestly KS you are not right or wrong, just our definitions dont match. To give you an example, if you rent a flat (as some brainwaves are suggesting now) you will be better off in good and bad times than own it. Ownership ofcourse gives u the right to live and trouble free from the owner of a rental property.
Appreciation does take place over time but it wont even set back bank interest very often. To give u a live example in Bangalore. Flat bought in 1998 has appreciated by 2 to 2.5 times in value. Rental value would have given some 6% p.a. in the past 10 years. This I dont think is great investment but great life to live in one. Incidentally finding a tenant is an activity and finding one continously is a worser one. So I wont disagree with you fully but the view is BUY FLAT TO LIVE, BUY LAND TO INVEST, inbetween it is just FUZZY LOGIC.

ROTFL, ROTFL,

Man!!, Whenever i read your post or try to respond to your post i immediately ROTFL. I don't know why i feel what i feel???

Anyway before responding to your post let me ROTFL:D:D:D:D:D

If IT was not the cause of this RE boom, then what driven this market?? Do you think its it because of PTC bus drivers, auto rickshaw and small time street side fruit vendors like you??

Actually you brought a very valid point. EMI being 3 to 4 times the value of rent. That is the pity. In other words if you ask me whether RETURNS from INVESTMENT IN REALESTATE IS SANE in CHENNAI or even in INDIA I will say a BIG NO? For example if you buy a flat in Chennai for 80L say in Vadapalani, 2bedroom then the rent is atbest 10K. So if I put 80L in the bank I will get 8L p.a. or 70K p.m. while rent is 10K. NO JUSTIFICATION. The reason is the continous inflation as also continuous rise in land price. Now rents do catch up with time but they never justify pricing. Now take Bangalore. Here a 40L flat will give you say around 15K p.m. so you get atleast 5% though that does not justify 10% rate in banks. Reason is simple. Bangalore allows Legally or otherwise FSIs of 3 times easily while Chennai allows only 1.5 (till the recent plan which again has clauses I believe!). Now land price is similar in both cities.
To answer your question in very simple 2 liners. Buy a house/flat etc if you think that adds to your comfort...meaning BANDHA (HYPE VALUE) or KUSHI (since no one can throw you out). On the other hand economically Rent is always the best solution.
Did I answer you?
Actually you brought a very valid point. EMI being 3 to 4 times the value of rent. That is the pity. In other words if you ask me whether RETURNS from INVESTMENT IN REALESTATE IS SANE in CHENNAI or even in INDIA I will say a BIG NO? For example if you buy a flat in Chennai for 80L say in Vadapalani, 2bedroom then the rent is atbest 10K. So if I put 80L in the bank I will get 8L p.a. or 70K p.m. while rent is 10K. NO JUSTIFICATION. The reason is the continous inflation as also continuous rise in land price. Now rents do catch up with time but they never justify pricing. Now take Bangalore. Here a 40L flat will give you say around 15K p.m. so you get atleast 5% though that does not justify 10% rate in banks. Reason is simple. Bangalore allows Legally or otherwise FSIs of 3 times easily while Chennai allows only 1.5 (till the recent plan which again has clauses I believe!). Now land price is similar in both cities.
To answer your question in very simple 2 liners. Buy a house/flat etc if you think that adds to your comfort...meaning BANDHA (HYPE VALUE) or KUSHI (since no one can throw you out). On the other hand economically Rent is always the best solution.
Did I answer you?

Dear natarajg007,

As far as I could see, black money plays a very big role in RE that too more in land deals.

ks2071746:D

Dear natarajg007,

Returnwise, though I agree with you that a rented house is a better option and putting the money in some invesment which will give atleast 10% regularly, the torture from the house owners as I hear from so many people known to me, is enormous. So also the case if we rent our own house to some one else wherein here also, we will be the sufferers. Quite, sober middle class people, can either manage to buy a flat/house and live in that rather than taking a house/flat for rental or give his own flat/house to a tenant for rent. Both ways, we will be hit and have to suffer. No better choice than this. I have my own example. I reside inTrichy. I had given my flat 850 sq. ft. in West Saidapet/Chennai about 10 years back for Rs. 3800 PM rent. 3 tenants have changed but the rent remained Rs. 3800 PM till I got my flat back for my son who got his trnafer from Hyderabad to Chennai about an year back. When the last tenant vacated the flat, he spolied the whole flat and I had to spend Rs. 50,000 to repair it, he was paying Rs. 3800 for my 3 room flat. In the same block of 12 flats comprising of 1 bed and 2 bed flats, another tenant is paying the came rent of Rs. 3600 PM for the 1 bed flat, yet another tenant is paying Rs. 3600 PM for 2 bed flat. See how ignorant we people are , in the sense that we don't move with each other and the same rent being paid for a 1 room, 2 room and 3 room flats? The biggest fun was, my tenant who was paying Rs. 3800 PM for almost 3 years, came to Trichy about 1.5 years back and rerquested me to reduce the rent to Rs. 3000 PM as he is finding it difficult to pay the rent. I told him better vacate or pay the same rent. This real story is for flat owners like me, who should visit their flats quite often, see how it is maintanied, verify from nearby sources on the rent trend etc. rather than leaving it to the God and to the tenant. Regards.

ks2071746

Dear natarajg007,

Returnwise, though I agree with you that a rented house is a better option and putting the money in some invesment which will give atleast 10% regularly, the torture from the house owners as I hear from so many people known to me, is enormous. So also the case if we rent our own house to some one else wherein here also, we will be the sufferers. Quite, sober middle class people, can either manage to buy a flat/house and live in that rather than taking a house/flat for rental or give his own flat/house to a tenant for rent. Both ways, we will be hit and have to suffer. No better choice than this. I have my own example. I reside inTrichy. I had given my flat 850 sq. ft. in West Saidapet/Chennai about 10 years back for Rs. 3800 PM rent. 3 tenants have changed but the rent remained Rs. 3800 PM till I got my flat back for my son who got his trnafer from Hyderabad to Chennai about an year back. When the last tenant vacated the flat, he spolied the whole flat and I had to spend Rs. 50,000 to repair it, he was paying Rs. 3800 for my 3 room flat. In the same block of 12 flats comprising of 1 bed and 2 bed flats, another tenant is paying the came rent of Rs. 3600 PM for the 1 bed flat, yet another tenant is paying Rs. 3600 PM for 2 bed flat. See how ignorant we people are , in the sense that we don't move with each other and the same rent being paid for a 1 room, 2 room and 3 room flats? The biggest fun was, my tenant who was paying Rs. 3800 PM for almost 3 years, came to Trichy about 1.5 years back and rerquested me to reduce the rent to Rs. 3000 PM as he is finding it difficult to pay the rent. I told him better vacate or pay the same rent. This real story is for flat owners like me, who should visit their flats quite often, see how it is maintanied, verify from nearby sources on the rent trend etc. rather than leaving it to the God and to the tenant. Regards.

ks2071746

You said it all my friend. That is why I tell "buy flat to live and buy land to invest". However you contradict the pithy one liner and state the same in many lines. When I write a long passage you question it, but you make my one liner into a long passage.
Ooops I dont want to do that to you! Just my silly oops CHILLY views. regards.
You said it all my friend. That is why I tell "buy flat to live and buy land to invest". However you contradict the pithy one liner and state the same in many lines. When I write a long passage you question it, but you make my one liner into a long passage.
Ooops I dont want to do that to you! Just my silly oops CHILLY views. regards.

Dear Natarajg007,

Sorry for my long message. I always attempt short messages most of the times, but have to end up with long ones as I explain my stories in simple English so that the readers can understand what I mean. Future messages mostly will be short ones in English what we use in day to day. Regards.

ks2071746

Dear Natarajg007,

Sorry for my long message. I always attempt short messages most of the times, but have to end up with long ones as I explain my stories in simple English so that the readers can understand what I mean. Future messages mostly will be short ones in English what we use in day to day. Regards.

ks2071746