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basant
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   Posted: 20/Jun/2007 at 4:05pm |
I told him - Rather than spending Rs. 40 lacs on property, I would rather spend it on a luxury SUV and take it to Ladakh. Tell me which property can do 0 - 100 kmph in 6 seconds?
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Can you use that SUV for the early morning job 
It is not that the Ambanis are not trustworthy but the junior Ambani dilutes equity far too often and my observation was on the weightage not the company really.
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smartcat
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Posted: 20/Jun/2007 at 4:10pm |
ha ha yeah - that came up too.
Since I cannot afford to buy an apartment or land without taking a loan, shouldn't this be seen as me using leverage (home loan)?
When I don't use leverage for the stock market, how can I use leverage for real estate - something that I really don't know anything about? something that is so illiquid?
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basant
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Posted: 20/Jun/2007 at 4:17pm |
Originally posted by smartcat
ha ha yeah - that came up too.
Since I cannot afford to buy an apartment or land without taking a loan, shouldn't this be seen as me using leverage (home loan)?
When I don't use leverage for the stock market, how can I use leverage for real estate - something that I really don't know anything about? something that is so illiquid?
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We had a discussion onm using leverage for the stock market.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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vivekkumar_in
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Posted: 20/Jun/2007 at 10:28pm |
[QUOTE/] You sound exactly like my dad! 
I told him - Rather than spending Rs. 40 lacs on property, I would rather spend it on a luxury SUV and take it to Ladakh. Tell me which property can do 0 - 100 kmph in 6 seconds?
That's when my dad threatened to evict me out of his house. [/QUOTE] I can't stop laughing.. I have similar conversations with my mom too.. I think it is a generation thing.. This may not be relavant to topic here.. But to stop my mom from bothering me too much, I parted away with 4 lakhs in 2002 for 2 grounds in outskirts of Chennai. Now grounds in that area are selling for 12 lakh each.... Thankfully my parents does'nt point out that they were right ..(which we as kids never miss a chance to do so when our parents are wrong..) It may be not be bad after all to indulge them once in a while ..
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Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
P Lynch
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CHINKI
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Posted: 20/Jun/2007 at 10:55pm |
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Since I am in this field, I suggest/recommend all of you to buy one for yourself and another for investmnet. Go through known sources and buy from reputed builders.
Like the way we do for the stocks (good management, high ROE, ROCE, EPS and so on), apply the same principle here also.
Value of the site where we have constructed our house now is up by 8 times within 7 years.
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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smartcat
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Posted: 20/Jun/2007 at 12:07pm |
| I parted away with 4 lakhs in 2002 for 2 grounds in outskirts of Chennai. Now grounds in that area are selling for 12 lakh each.... |
Sensex has given an average of 20% CAGR since its inception. What is the average real estate returns in the past 20 years? Over a long term, does real estate beat equity?
| Like the way we do for the stocks (good management, high ROE, ROCE, EPS and so on), apply the same principle here also. |
While I can read up on the internet for equity investments, I have nowhere to go for real estate investments. Chinki - if possible, start a new thread on how to identify land/aparment in a city for investment.
Edited by smartcat - 20/Jun/2007 at 12:08pm
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xbox
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Posted: 20/Jun/2007 at 5:29am |
I parted away with 4 lakhs in 2002 for 2 grounds in outskirts of Chennai. Now grounds in that area are selling for 12 lakh each....
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If you had picked any *stock on 2002, I guess you have never regreted. Imagine what 4 lakhs in 2002 could have become like in tv18, pantaloon, HDFC etc. etc. A decent MF could have given you 7 times.
Timing is very important part of any investment. A story which started from 2002 is one of it's kind. Probably our generation will not witness it again.  but best part...we don't guess it to stop so early either. |
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Don't bet on pig after all bull & bear in circle.
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Mr. V
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Posted: 20/Jun/2007 at 6:26am |
Originally posted by vipul
I parted away with 4 lakhs in 2002 for 2 grounds in outskirts of Chennai. Now grounds in that area are selling for 12 lakh each....
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If you had picked any *stock on 2002, I guess you have never regreted. Imagine what 4 lakhs in 2002 could have become like in tv18, pantaloon, HDFC etc. etc. A decent MF could have given you 7 times.
Timing is very important part of any investment. A story which started from 2002 is one of it's kind. Probably our generation will not witness it again. but best part...we don't guess it to stop so early either. |
Just buying the sensex would have given you a 5 bagger.
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