Real Estate

Conversations: Buy Property In The US? (With Manish Jain)

Deepak Shenoy speaks with Manish Jain from MProfit about buying property in the US.  As an Indian resident, you can remit upto $200,000 abroad, and when you hear that houses are going for less than $85,000 you might want to jump at the opportunity. But like Manish says, things are not hunky-dory in that land either.

Videos on Real Estate Prices

Ajit Dayal speaks of an interesting video in RE prices, one year back:

Video: China's Ghost Cities and Malls

An incredible video by the Australian SBS DateLine on China. 64 million apartments are empty!

 

Real Estate Return Guarantees And A Warning

I got a couple of emails that asked me about the new phase of real estate offers that go something like this:

Beetle Suite Ad

(Yes, it's real. Actual screen shot of this page)

Other variations of such plans are like this:

  • Take a loan, and builder will pay your EMI! Till possession.
  • Get 1% return per month on your money until possession.

What's this all about? A guarantee of a return?

Cutting Real Estate Down To Size

My article at Yahoo: Cutting Real Estate Down To Size on their Budget Site.

(Reproduced in full)

In an economy that is seeing ridiculous levels of increase in real estate prices, it is strange that we continue to give it sops, sometimes to an extreme. Let me list the ways real estate is "preferred" as a mode of investment.

First, you are allowed an income tax deduction of Rs. 150,000 on the interest paid for the home you live in. This, you think, is justified; you are also allowed a deduction (without limit) on any education loan. But it doesn't apply to any other loan you ever take - car loans, personal loans, a loan to buy that fridge that ensures your food doesn't rot and so on. I would recommend that either all interest paid on a loan for ANY durable - like cars or fridges - be tax free. After all, the government charges the bank income tax on that money.

Or, they must remove the special exemption for housing loan interest completely. Education loan exemptions are far less kind; they should stay, for the only reason that education is far more useful. A house is only as useful as a car nowadays.
Second, if you buy a second house, you're allowed to deduct an unlimited amount of interest paid on the loan. Again, just because no other item on your personal balance sheet is allowed that kind of deduction, I say remove it for housing, or let everything else in. How can you incentivize SECOND houses, for goodness sake!

Michael Lewis on Ireland

An excellent piece on Ireland by Michael Lewis. Lewis writes ridiculously well, a writing that is about people and places and interactions and inanities, all knit together to make you feel like you were there. Or at least, that you can imagine you were there. Lush countrysides, built and unoccupied real estate, meetings with senior members of parliament, the comparisons with Iceland, the laid-back manner of the Irish, the dirty behaviour of Merrill Lynch, Polish workers running back home and leaving cars in the airport parking lot, draconian bankruptcy procedures and guys who throw eggs at irresponsible bank chairmen. He has it all, and he has it in a way that makes me wonder why I bother to write. I'm seriously inspired.

MV Chronicle: Jan 22, 2011 - Real Estate, Liquidity Measures and More...

The Jan 22 edition of the MarketVision Chronicle is out! Read about Real Estate, Liquidity Measures, summary posts and more:

HDFC Ups RPLR to 15%

(Thanks to @Work_ant for mentioning this)

HDFC increased its Retail Prime Lending Rate (RPLR) to 15% yesterday – see pic below - , up 75 basis points (0.75%) from December 1. This follows an increase in RPL increase of 0.5% on September 1.