Deep Impressions

  Why ‘Rent v/s Buy’ debate is losing traction     A few years back, Rent v/s Buy remained the hottest topic for debate on real estate – be it in social media or be it among home seeking couples. The proponents of Rent (typically the husband in home debates) would argue that when the rent costs just 2% of the capital value borrowing at 9% to buy home did not make sense. The other side would support its case through the long term appreciation that real estate has delivered over years.    Interestingly, such debates are now more conspicuous either by their absence or by their significantly reduced intensity. And this is despite the fact that neither the number of rental transactions have shrunk nor have the number of home purchases    So, why has this debate been losing steam ?       A decco at the composition of home seekers market throws some light. Home seekers today comprise :   a)      The Young Home Seeker   This segment comprises those in twenties and discovering their life which

    Real Estate : Derivatives is the way to go     Vanilla products can take real estate achieve a limited target. As asset markets mature, one needs to look for product-innovation to deepen the market as well as to address the evolving need of new kinds of customers                      - - - - - -    - - - - - -    - - - - - -    - - - - - -    - - - - - -    - - - - - -    - - - - - -    - - - - - -    - - - - - -    Real Estate business today is in a complex situation. High Capital requirement. High interest rates….and yet few lenders Higher land valuations. Rising constructions costs…and still marginal increase in finished good prices.      Large tax for exchequer. Huge employment for society….. but…thin profits for the sector   How does one approach a complex situation as this ?   L’Hospital rule ( or Bernoulli’s rule) in Calculus says that when computing limits of a complex function is not possible through normal means, its derivative may provide the answer.   And to me this 17

  Why is real estate regulation caught in a time warp? The challenges faced in real estate regulation are not limited to the trends in the virtual world. The marketplace in the real world, too, is demanding that regulation be more nimble, more agile, and more forward looking  (  Also, published today in  moneycontrol.com )                - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  - - - - - - -  Parliament sessions, including the February 1 Budget session, have been largely silent on changes in taxes, as well as regulations with respect to real estate. However, as more activities in these areas go virtual, regulation and legislation may need to keep pace. Classes to conferences and currencies to campaigns are now more prominent in their virtual avatars. Though real estate and the homes we live have not become virtual, as more things go virtual regulation in the real estate sector will start appearing more jarring.    Any real

  The United Celebration of India Add Bollywood and Cricket, and you and a super success formula, yet only on two occasions, the formula has reached exceptional excitement levels  ( Also published in  movietalkies.com  )      - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  - - - -  The two big forces that have the potential to connect people across the length and breadth of India and also connect Indians across the globe are Bollywood and Cricket. So, when the two together get connected, it’s no surprise that the excitement reaches a new dimension. Be in Anju Mahendroo/Gary Sobers or Sharmila Tagore/Pataudi or Kohli/Anushka, eyeballs in all generations have been spinning stories. But these have been personal events. On the business front, Bollywood and Cricket have come together on many occasions - All Rounder (1984), Awwal Number (1990), Iqbal (2005) and many more - but the kind of excitement that ’