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Now, a real estate mutual fund


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jaggu
Fools buy houses - wise men live in them - here is why:
by jaggu on Oct 26, 2009 03:19 PM



1) No Long term Demand : After 6 decades of family planning most families have only one child now for 2 generations- so property inheritences will grow fast.
2) Over invested : Most people now have upto 2 -3 flats in name of investment- even Govt servants have them.
3) "Dream House" : Those who have built a big dream houses get transfered elsewhere.
3)"Children" : They will never settle in parent's house due to college and career. Even when al is well - human nature will intervene.
4)"Good tenants" - They are scarce- they don't want to pay well or even maintain large houses properly.
5) "Locked Houses" : Risk of encroachment & rackets like Nithari case & Lokhandwala firing has shown.
6)"Workmanship" If you buy even a small table fan - it comes with 7 year warranty - but not so for these modern houses - some are simply glass structures.
7) "Managed" Infrastructure :Water, transport and electricity are never part of builder's look out - they are only "MANAGED" and disappear after all flats are sold.
8) "Tax exemption" will disappear in revised tax code to pay for 5th generation of netas.
9) " Returns" A 3 BHK costing 90 lacs can't fetch a Rs 20000/- tenant regularly and will not appreciate till you sell it off after 15 years.
10) REALITY: Builder raises prices jointly with a bank that offers liberal loan thus causing 20 years of SLAVERY.



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