Hi
As we have got a new seprate thread for comparison discussion..I am sharing some of my views & experiences..
I have read the report shared by st da..I came to know about property cycles..If I make a chart according to this cycle..I thought I sold my property just before exponential growth or we can say just before last exhaustive leg of bull cycles of property..so as Per study no buy till 2020..intresting study! thanks st da for it!
I think people invest in real estate for emotional reasons..1 house is living is enough..but buying as many properties as much we can is residual signal of feudal mantatilty in our Country's DNA..
I always & ponder over the fact why people are so much intrested in realinvestment & gold rather than equity? or that we have to go back, & see our history..in last century, people considered rich who have lot of properties & gold..our kings have lot of properties & gold..so common people considered rich having lot of properties & gold..
our generation see a lot of riches story of common men by investing in gold & property..but we have lot of stories where people looses in share market..so there is always again those 2 important emotions related to investment also..people have GREED in real estate but FEAR assocated with EQUITY..so when people invest ,they dont behave logically or rationally..but they take emotional decisions ..they invest in real estate & gold although they are costly..but having fear of not investing in equity , just beacause of fear..so here also, in general investing, 2 emotions play a important role..
People have emotional reasons to buy property & gold.because those 2 things associated with kings & royalness..so they think emotionally..in the same way, they buy big cars...they think car is asset but although its liabilty..
When I read RICH DAD,POOR DAD..my eyes opened..actually there are so many things, which associated with luxury & for just showoff purpose are really liabilties..after that, i consider two defination...ASSET; which generates income..Liabilty: which creates expenditure..
so now on whenever I take financial decision..I take consider this simple funda..so for me Car is liabilty not a asset..& so many other luxory items..
& second thing important for investing, is compounding..i have read long before WARREN buffet's Book..where he mentioned power of compounding..& mention..how a simple saving of 1000 Rs/motnh can create wealth of long term..he mentioned why he didnt give donations in early years..he invested all this money which he considered for charity & give 1000 times more donation by same amount of money..
so Money decisions shuld be taken from Brain not from heart..emotional decision will not lead to wealth..
in western countries, people create rent income ..its a good decision but in our country where law & rules depends on power of persons, better to stick on those investment decisions which we can handel safely & with manageable risk.
Thanks
As we have got a new seprate thread for comparison discussion..I am sharing some of my views & experiences..
I have read the report shared by st da..I came to know about property cycles..If I make a chart according to this cycle..I thought I sold my property just before exponential growth or we can say just before last exhaustive leg of bull cycles of property..so as Per study no buy till 2020..intresting study! thanks st da for it!
I think people invest in real estate for emotional reasons..1 house is living is enough..but buying as many properties as much we can is residual signal of feudal mantatilty in our Country's DNA..
I always & ponder over the fact why people are so much intrested in realinvestment & gold rather than equity? or that we have to go back, & see our history..in last century, people considered rich who have lot of properties & gold..our kings have lot of properties & gold..so common people considered rich having lot of properties & gold..
our generation see a lot of riches story of common men by investing in gold & property..but we have lot of stories where people looses in share market..so there is always again those 2 important emotions related to investment also..people have GREED in real estate but FEAR assocated with EQUITY..so when people invest ,they dont behave logically or rationally..but they take emotional decisions ..they invest in real estate & gold although they are costly..but having fear of not investing in equity , just beacause of fear..so here also, in general investing, 2 emotions play a important role..
People have emotional reasons to buy property & gold.because those 2 things associated with kings & royalness..so they think emotionally..in the same way, they buy big cars...they think car is asset but although its liabilty..
When I read RICH DAD,POOR DAD..my eyes opened..actually there are so many things, which associated with luxury & for just showoff purpose are really liabilties..after that, i consider two defination...ASSET; which generates income..Liabilty: which creates expenditure..
so now on whenever I take financial decision..I take consider this simple funda..so for me Car is liabilty not a asset..& so many other luxory items..
& second thing important for investing, is compounding..i have read long before WARREN buffet's Book..where he mentioned power of compounding..& mention..how a simple saving of 1000 Rs/motnh can create wealth of long term..he mentioned why he didnt give donations in early years..he invested all this money which he considered for charity & give 1000 times more donation by same amount of money..
so Money decisions shuld be taken from Brain not from heart..emotional decision will not lead to wealth..
in western countries, people create rent income ..its a good decision but in our country where law & rules depends on power of persons, better to stick on those investment decisions which we can handel safely & with manageable risk.
Thanks