2007-12-26

Ownership and Land

Ownership is a strange fascination. Usually, the obsession with owning a house is more than being in a rented house. The obsession of owning an independent house is more than owning a flat.

A research proves that, over one's life, one is financially better off being in a rented house than owning one. This is easily verified by the property prices Vs rentals. The capital investment to own a house / flat in a large city is pretty high; whereas the returns (rentals) are hardly inspiring.

Still, we would like to own an independent house; if not, then at least own a flat. Ownership of Land, along with religion and sex, qualifies as the ultimate opium.

PS: As an aside, a lady or a gentleman would, most times than not, give up a lover than the spouse, as spouse represents ownership.

8 comments:

Kapil said...

hey vijay !! welcome back

Debashis said...

The analyst (Read Vijay K.M) missed here the thoughts of Maslow, who says shelter is one of the basic needs (at the bottom of the pyramid). And being in rent where the security is (not physical). It’s a definitely a fascination for the world (Mittal’s buying the heavily priced house), but probably it’s a need for a family/occupants.

Regards
Debashis

Ravi Ivaturi said...

Vijay,

Financially speaking, I don’t see a problem with owning an appreciating asset. In calculating the return on your own property, did you ignore the capital appreciation?

How are things at your end? Still in Chennai?

itheabsolute said...

Debashis

Precisely my point. A owned house provides comforts which are not necessarily translatable into financial gains.

Thanks for dropping by

Cheers

itheabsolute said...

Hi Ravi

we are talking about a period which is 30-40 years. I have included capital appreciation; at the same time I have included opportunity cost.

Right now in Chennai. Some changes, pretty soon, which I will announce.

Thanks for writing. How is life in Singapore?

Cheers

Debashis said...

Hi Vijay;

Your thoughts on the eve of New year? Sincerely wish to see a post on the same. And yes, wish you and your family a joyous year ahead.

Regards
Debashis

raggy said...

nice blog.to increase traffic to your blog just submit your news,links at www.indiasurfer.com.see the change in one week.i would like to have you registered on my site

Anonymous said...

I stay in pune...and the changing economics of owning a flat and renting one has baffled many a economists...

u might have heard/read it...

2007-12-26

Ownership and Land

Ownership is a strange fascination. Usually, the obsession with owning a house is more than being in a rented house. The obsession of owning an independent house is more than owning a flat.

A research proves that, over one's life, one is financially better off being in a rented house than owning one. This is easily verified by the property prices Vs rentals. The capital investment to own a house / flat in a large city is pretty high; whereas the returns (rentals) are hardly inspiring.

Still, we would like to own an independent house; if not, then at least own a flat. Ownership of Land, along with religion and sex, qualifies as the ultimate opium.

PS: As an aside, a lady or a gentleman would, most times than not, give up a lover than the spouse, as spouse represents ownership.

8 comments:

Kapil said...

hey vijay !! welcome back

Debashis said...

The analyst (Read Vijay K.M) missed here the thoughts of Maslow, who says shelter is one of the basic needs (at the bottom of the pyramid). And being in rent where the security is (not physical). It’s a definitely a fascination for the world (Mittal’s buying the heavily priced house), but probably it’s a need for a family/occupants.

Regards
Debashis

Ravi Ivaturi said...

Vijay,

Financially speaking, I don’t see a problem with owning an appreciating asset. In calculating the return on your own property, did you ignore the capital appreciation?

How are things at your end? Still in Chennai?

itheabsolute said...

Debashis

Precisely my point. A owned house provides comforts which are not necessarily translatable into financial gains.

Thanks for dropping by

Cheers

itheabsolute said...

Hi Ravi

we are talking about a period which is 30-40 years. I have included capital appreciation; at the same time I have included opportunity cost.

Right now in Chennai. Some changes, pretty soon, which I will announce.

Thanks for writing. How is life in Singapore?

Cheers

Debashis said...

Hi Vijay;

Your thoughts on the eve of New year? Sincerely wish to see a post on the same. And yes, wish you and your family a joyous year ahead.

Regards
Debashis

raggy said...

nice blog.to increase traffic to your blog just submit your news,links at www.indiasurfer.com.see the change in one week.i would like to have you registered on my site

Anonymous said...

I stay in pune...and the changing economics of owning a flat and renting one has baffled many a economists...

u might have heard/read it...