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Builders & Real Estate Bulls Theory Proved Wrong

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Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
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  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    Originally posted by wiseman View Post
    Real and other folks,

    The term senior does not have anything to do with age or wisdom! Its to do with longevity of membership measured in terms of posts (I think).

    Anyways, coming back to topic, the actual misunderstanding between older (and presumably more experienced) members and younger members is this.

    DEBT does NOT add wealth. This, the older members understand very well through experience.

    Today, DEBT provides younger people jump the gun, fall prey to their impatience (goes with age) and desire to get every high-depreciating asset TODAY (example expensive cars, l.aptops, cell p.hones, club memberships etc, etc). - damn filter eats up even l.aptop and p.hone!

    Living beyond your income = spending your future income => less income in future to take care of much higher expenses => much lower level of living in future!!!

    Got it?

    If you do not believe me, simply look up the budget gap between what the Govt has promised PF depositors (or Pensioners in US) and what they have in hand and project into the future. Clearly, this HUGE shortfall means even more Govt borrowing to fund the deficit OR go back on the promise of PF/Pension payment. Govts of the world are showing youngsters (and all others) what happens to your latter years (when you have least future earning capacity) if you binge in the younger years on high levels of DEBT. Humans never learn from other's mistake ....

    The magic mantra is ...
    1. As early as possible save as much as possible
    2. Put these savings as much as possible in longer-term high-growth investments on CASH BASIS only (not borrowing to buy asset)
    3. Be FRUGAL in the early years
    4. Buy only substantially in cash and only what you need and can afford

    Then, if all else works out, you will be fairly well off even in your middle age and pretty rich in your latter years.

    But since the current generation Y Z ... is programmed by TV, Internet and other media to be susceptible to buy the latest, greatest gadget (whether it makes sense or not), they will generally behave like robots and buy, buy, buy. Time will do the rest.

    This is what the basic difference between Real's philosophy and the "junior"'s thought process.

    This is human nature. Nothing can be done about it.

    cheers
    Excellent post. Nice balanced views. To the point writing.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by wiseman View Post
      Real and other folks,

      The term senior does not have anything to do with age or wisdom! Its to do with longevity of membership measured in terms of posts (I think).
      ...
      cheers
      Indeed, very well said (and insightful)!

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by wiseman View Post
        Real and other folks,

        The term senior does not have anything to do with age or wisdom! Its to do with longevity of membership measured in terms of posts (I think).

        Anyways, coming back to topic, the actual misunderstanding between older (and presumably more experienced) members and younger members is this.....
        Thanks a lot for this wonderful post. You put off some strain from my fingers . I have learnt a lot from my previous generations & much senior people in life (people like you wiseman) & frankly, most of my friends are atleast 8-10 yrs elder than me. Friends of my age only think about splurging, & *----* you know! These elders really give me loads of ready made experience, so I have learnt one thing:- Be what you are, don't imitate what society wants you to be.

        RE to large extent is mainly driven by societal pressures & it is this pressure which makes you get into debt trap. Decide. Cheers to life .

        Btw, no wonder then that builders like Sobha (as mentioned earlier) state that 40%+ of their buyers are ITGs.

        Hey, anyone planning to visit yet another PBAP/Credai Pune exhibi at Hotel Pride Executive, Ganeshkhind road?
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Thanks folks!

          Sometimes God writes with the help of my fingers ...

          Rest of the time I blunder around

          cheers

          PS - Btw Real, I'm just 48 (not that old ). Still got the ability to outplay, outtrek and outcode a lot of youngsters (don't drink, smoke and am Vegetarian (by choice)!). Still got quite a few years under my belt to do better than I am - I hope
          Last edited by wiseman; October 26 2010, 11:53 PM.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Builders are now showing their frustration, check the latest news inSakal paper -

            http://www.esakal.com/esakal/2010102...1441944178.htm

            For non-marathi readers - the title reads like this "The present prices of apartments are UNREAL", said DS Kulkarni, the owner of DSK.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by wiseman View Post

              The magic mantra is ...
              1. As early as possible save as much as possible
              2. Put these savings as much as possible in longer-term high-growth investments on CASH BASIS only (not borrowing to buy asset)
              3. Be FRUGAL in the early years
              4. Buy only substantially in cash and only what you need and can afford

              Then, if all else works out, you will be fairly well off even in your middle age and pretty rich in your latter years.

              But since the current generation Y Z ... is programmed by TV, Internet and other media to be susceptible to buy the latest, greatest gadget (whether it makes sense or not), they will generally behave like robots and buy, buy, buy. Time will do the rest.

              This is what the basic difference between Real's philosophy and the "junior"'s thought process.

              This is human nature. Nothing can be done about it.

              cheers
              Really nice one .. and one from wiseman which I understood

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by monds View Post
                Builders are now showing their frustration, check the latest news inSakal paper -

                http://www.esakal.com/esakal/2010102...1441944178.htm

                For non-marathi readers - the title reads like this "The present prices of apartments are UNREAL", said DS Kulkarni, the owner of DSK.
                I didn't get what exactly he want to say...I feel he is saying as prices r Hyped?
                Is that the correct interpretation?

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  I think we are WAY away from the topic. Instead of fighting with each other, let us air our views.Each individual has his own views.

                  Its the readers or the members to take whats good and whats bad of them...maybe all of us should include the "disclaimer" tag.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Wiseman, thanks for your seasoned posts, learning lot from it.
                    Recently, read about Maddison's magic number (per capita of 7000$ on PPP), used in G20 discussions. Most of poor Asian countries reached this number and then growth slowed and failed to be developed countries. Japan and South-Korea are exceptions where innovation & efficiency has driven them to be developed.

                    India can either be developed or be developing with inefficient infra/people.
                    What is your prognosis on India's future growth rates?
                    Last edited by hitmady; October 27 2010, 05:45 PM.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by wiseman View Post
                      Real and other folks,

                      The term senior does not have anything to do with age or wisdom! Its to do with longevity of membership measured in terms of posts (I think).

                      Anyways, coming back to topic, the actual misunderstanding between older (and presumably more experienced) members and younger members is this.

                      DEBT does NOT add wealth. This, the older members understand very well through experience.

                      Today, DEBT provides younger people jump the gun, fall prey to their impatience (goes with age) and desire to get every high-depreciating asset TODAY (example expensive cars, l.aptops, cell p.hones, club memberships etc, etc). - damn filter eats up even l.aptop and p.hone!

                      Living beyond your income = spending your future income => less income in future to take care of much higher expenses => much lower level of living in future!!!

                      Got it?

                      If you do not believe me, simply look up the budget gap between what the Govt has promised PF depositors (or Pensioners in US) and what they have in hand and project into the future. Clearly, this HUGE shortfall means even more Govt borrowing to fund the deficit OR go back on the promise of PF/Pension payment. Govts of the world are showing youngsters (and all others) what happens to your latter years (when you have least future earning capacity) if you binge in the younger years on high levels of DEBT. Humans never learn from other's mistake ....

                      The magic mantra is ...
                      1. As early as possible save as much as possible
                      2. Put these savings as much as possible in longer-term high-growth investments on CASH BASIS only (not borrowing to buy asset)
                      3. Be FRUGAL in the early years
                      4. Buy only substantially in cash and only what you need and can afford

                      Then, if all else works out, you will be fairly well off even in your middle age and pretty rich in your latter years.

                      But since the current generation Y Z ... is programmed by TV, Internet and other media to be susceptible to buy the latest, greatest gadget (whether it makes sense or not), they will generally behave like robots and buy, buy, buy. Time will do the rest.

                      This is what the basic difference between Real's philosophy and the "junior"'s thought process.

                      This is human nature. Nothing can be done about it.

                      cheers

                      Wisey, this is by far your wisest post!!!!

                      Fantabulous
                      Venky (Please read watch a or before posting)

                      Comment

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