What say??????????????????
Some basic statistics on rates of houses / rental rates in different areas of the Chennai follows. Before you go thru those points, please understand that
* None of stats these are accurate and only represents the authors perception of the rates.
* These stats are used for the sole purpose of this blog.
* So, please dont get lost in the actual stats but try and think over the force behind this argument.
AnnaNagar/T.Nagar/Mylapore/Adyar/Alwarpet/BesantNagar - 3.5 - 10/18
Vadapalani/W.Mambalam/AshokNagar/Kodambakkam - 3.1 - 7/15
Velachery/Triplicane/Royapettah/Saidapet/Thiruvanmiyur - 2.8 - 6/12
Aadambakkam/Nanganallur/Chrompet/Pallavaram/K.K.Nagar - 2.5 - 5/9
Madipakkam/Porur/Ambattur/Perambur/Villivakkam - 2.0 - 3/7
* The first number indicates the amount in millions of rupees that one needs to spend to buy a 1000sqft flat in that area.
* The second number indicates the amount in thosands of rupees that one needs to spend to rent a 1000/2000 sq.ft flat in that area.
* I reiterate, these are only some vague numbers based on the authors perception.
Most people start thinking about buying a house at about 22 and actually fall into the trap at about 25. Now that with India Shining, most people are upwardly mobile, especially the IT folks. So they plan to spend 3M in buying a house. ICICI/HDFC/HSBC and all the other financial instituitions are just waiting to give you that loan that you need, albeit at a hefty interest rate which will ensure that you will repay 5M in a period of 20 years.
This means you will stay in your 'own' house, a 1000sqft house, for say the next 20 years atleast. So one ends up spending 5M to own a 1000 sq ft house in a decent area of the city. I am sure most of the real estate eagles would mostly agree with this small maths.
Now, consider this alternate maths about spending that 5M in another avenue.
To rent a 2000 sqft (twice the size which you can buy) house in the same area will probably cost 15K. So, every year it will set you back by 180K. So, after 20 years, you would have spent 3.6M in rental alone. Obviously rent rates will increase. So let me add another 400K to cover that. So at the end of 20 years, you would have spent 4.0M for your living.
Which is a better choice. IMNHO, the second choice rockz. I get to live for 20 years, (the bulk of my middle age) in a nice and plush house (rememeber I am paying a huge rent). I end up spending 1M less which can be used for many things. You can even become a good philanthropist if you so desire. Alternatively you can also travel across the globe. :)
Also, if you think, 'Hey come on.. why do I need a 2000sq ft house. After all, I am going to have one wife and one child. A good two bedroom house would be sufficient.' In this case, thou art indeed blessed. For, you will be spending far less on rentals and will be easily left with about 25M at the end of 20 years. If you spend say 2lakh every alternate year on international travel, then you would have covered most of the places on earth. You might actually be left with some more money despite the travels :)
Of course, everything has a flip side. The flip side is, you will not own a house when you are 50. But hey, do you realize that with all the pollution around us, do you really stand a chance for a healthy(if you are unhealthy, it does not matter if you are living in a 1000 room palace or a 1 room house. you are gonna be stuck in 1 bed) life (if at all you live) beyond 60? Dude, it helps to be a bit philosophical. There have been millions of humans all over the world right thru the ages, owning all sorts of things. Eventually, everyone dies. Remember the cardinal rule of god. You cannot take anything from this earth with you when you die :). Understand this. YOU WILL DIE VERY VERY SOON (wrt to astronomical time scales). So, in this brief period that you are here on earth, make it as fruitful as possible, as happy as possible. Dont get caught into this trap of buying a house and get stuck to it for life. Do things that will excite you and give your brethren tremendous pleasure.
Of course, you are now thinking, "what will my sweet little beta do? He deserves a house of his own." Come on. Give me a break dude. Your son will have a d**k and brain of his own. He will be able to stand on his own leg. Spend the money that you intend to spend on the house on him. Give him good health and good education. He will be able to lead a wonderful and happy life.
What say?
Some basic statistics on rates of houses / rental rates in different areas of the Chennai follows. Before you go thru those points, please understand that
* None of stats these are accurate and only represents the authors perception of the rates.
* These stats are used for the sole purpose of this blog.
* So, please dont get lost in the actual stats but try and think over the force behind this argument.
AnnaNagar/T.Nagar/Mylapore/Adyar/Alwarpet/BesantNagar - 3.5 - 10/18
Vadapalani/W.Mambalam/AshokNagar/Kodambakkam - 3.1 - 7/15
Velachery/Triplicane/Royapettah/Saidapet/Thiruvanmiyur - 2.8 - 6/12
Aadambakkam/Nanganallur/Chrompet/Pallavaram/K.K.Nagar - 2.5 - 5/9
Madipakkam/Porur/Ambattur/Perambur/Villivakkam - 2.0 - 3/7
* The first number indicates the amount in millions of rupees that one needs to spend to buy a 1000sqft flat in that area.
* The second number indicates the amount in thosands of rupees that one needs to spend to rent a 1000/2000 sq.ft flat in that area.
* I reiterate, these are only some vague numbers based on the authors perception.
Most people start thinking about buying a house at about 22 and actually fall into the trap at about 25. Now that with India Shining, most people are upwardly mobile, especially the IT folks. So they plan to spend 3M in buying a house. ICICI/HDFC/HSBC and all the other financial instituitions are just waiting to give you that loan that you need, albeit at a hefty interest rate which will ensure that you will repay 5M in a period of 20 years.
This means you will stay in your 'own' house, a 1000sqft house, for say the next 20 years atleast. So one ends up spending 5M to own a 1000 sq ft house in a decent area of the city. I am sure most of the real estate eagles would mostly agree with this small maths.
Now, consider this alternate maths about spending that 5M in another avenue.
To rent a 2000 sqft (twice the size which you can buy) house in the same area will probably cost 15K. So, every year it will set you back by 180K. So, after 20 years, you would have spent 3.6M in rental alone. Obviously rent rates will increase. So let me add another 400K to cover that. So at the end of 20 years, you would have spent 4.0M for your living.
Which is a better choice. IMNHO, the second choice rockz. I get to live for 20 years, (the bulk of my middle age) in a nice and plush house (rememeber I am paying a huge rent). I end up spending 1M less which can be used for many things. You can even become a good philanthropist if you so desire. Alternatively you can also travel across the globe. :)
Also, if you think, 'Hey come on.. why do I need a 2000sq ft house. After all, I am going to have one wife and one child. A good two bedroom house would be sufficient.' In this case, thou art indeed blessed. For, you will be spending far less on rentals and will be easily left with about 25M at the end of 20 years. If you spend say 2lakh every alternate year on international travel, then you would have covered most of the places on earth. You might actually be left with some more money despite the travels :)
Of course, everything has a flip side. The flip side is, you will not own a house when you are 50. But hey, do you realize that with all the pollution around us, do you really stand a chance for a healthy(if you are unhealthy, it does not matter if you are living in a 1000 room palace or a 1 room house. you are gonna be stuck in 1 bed) life (if at all you live) beyond 60? Dude, it helps to be a bit philosophical. There have been millions of humans all over the world right thru the ages, owning all sorts of things. Eventually, everyone dies. Remember the cardinal rule of god. You cannot take anything from this earth with you when you die :). Understand this. YOU WILL DIE VERY VERY SOON (wrt to astronomical time scales). So, in this brief period that you are here on earth, make it as fruitful as possible, as happy as possible. Dont get caught into this trap of buying a house and get stuck to it for life. Do things that will excite you and give your brethren tremendous pleasure.
Of course, you are now thinking, "what will my sweet little beta do? He deserves a house of his own." Come on. Give me a break dude. Your son will have a d**k and brain of his own. He will be able to stand on his own leg. Spend the money that you intend to spend on the house on him. Give him good health and good education. He will be able to lead a wonderful and happy life.
What say?
