“You may not control life’s circumstances, but getting to be the author of your life means getting to control what you do with them.”
― Atul Gawande, Being Mortal: Medicine and What Matters in the End
I am inspired to write this after reading Being Mortal by Dr Atul Gawande , which is an extremely well written book on the subject of mortality, ageing and the joys and challenges that go with it.
It is by now well known that life expectancy is at an all time high. Nowadays when our elders bless us by saying “ May you live to the age of 100”, we all know it can very well come true. Medical advances, our own awareness and ability to take good care of our mind and bodies means that we can all expect to live longer than our forefathers.
The flip side of this is that we need to provide for the period of our life beyond the age of retirement, which is a challenging task.
There are quite a few of us who are deeply invested in real estate, by virtue of the following
2. Our own inclination. Investments made through amounts earned during the working years.
Like any other asset class, real estate has it’s shares of ups and downs. The other major drawback of real estate is it’s illiquidity. I routinely advise my Senior Citizen Clients to exit Real Estate and deploy the money in more liquid avenues. Also as the options in the real estate market widen, it is often seen that in spite of dropping prices, we are unable to sell our property. There is also the challenge of understanding and complying with the laws, the most important of which is taxation. It is often wise for many of us to sell, pay our taxes and be free to deploy the proceeds in a manner which will be appropriate for our needs as we age. If our Children are not able to or are not willing to assist us in doing the transaction, then we are vulnerable . The selling process has also moved to online portals and most senior citizens struggle with the internet.
At Realtygyan, we bring to the table, a huge network across the city of Mumbai and Navi Mumbai, which will enable us to assist you in reselling your apartment. We have , in our core group, professionals who will guide in completing the transaction very smoothly.
The most difficult decision is of course to take a decision. We are very often emotionally attached to the property we buy. However, time is a very bad task master and punishes individuals who sacrifice money to the “pull” of emotions. The best way to deal with this dilemma is to refer it to a ‘ third ‘party. At Realtygyan, we will be glad to be your sounding board. You can have a no obligations chat with our team and this might well help you in making up your mind.
We are creating a separate section on our website to highlight properties offered by Senior Citizens so that we can prioritize your needs.
Call us or write to us:
Satyawan: 9699260779 / Satyawan@realtygyan.com
Prakash Natarajan: 9820606187 / firstname.lastname@example.org
London, Wed, 21 Mar 2012ANI
London, Mar 21 (ANI): Housing prices in India have witnessed the biggest increase in the world over the last ten years, according to a new research.
According to the Lloyds TSB International Global Housing Market Review, house prices in India increased by a staggering 284 per cent since 2001, after inflation.
This is equivalent to an average annual rise of 14 per cent.
The report showed that emerging markets saw the biggest increases in house prices over the past decade, but the UK was still among the 15 top performing housing markets.
Just behind India in the table is Russia and South Africa, which saw house values rise by 209 percent and 161 per cent respectively, The Daily Mail reports.
Japan recorded the biggest fall in house prices, 30 per cent, while house prices in Germany are down 17 per cent and United States two per cent.
According to the report, Britain fared well in comparison, with house prices rising by 50 per cent over the past decade, putting it 13th out of 32 countries covered in the list.
Hong Kong was closely followed by India, which had saw a nine per cent house price growth last year and Norway with seven per cent. (ANI)
Use your house as a Mast and not as an Anchor. So spoke the wise man Kahlil Gibran.
Like most others, I stayed put in an apartment for well over 20 years. Looking back I wonder, why is it that whilst we seek novelty in everything else, we stick to our apartment, even if it has outlived it’s utility for us. We overhaul our wardrobe, change our eating habits, seek new experiences and constantly seek to evolve . However, the very thought of changing our abode is ,well ,frightening.
We take it that we will forever stay in that Hole in the Wall at ” Ghatkopar”, seriously try suggesting otherwise. If at all we get into a vigorous debate about the merits of moving house , we get the familiar litany of reasons . Here is a list of some of them.
1. School is nearby. Strangely ,this argument is latched onto even when the Children have completed their education and are settled in distant America.
2. Bus Depot / Bus Stop is within walking distance. Never mind that the last time you boarded a bus umm. when was the last time ?, after we bought two cars.
3. Good Neighbours. Overlooking the fact that we have long since ceased socialising with the grim faced family that is of similar vintage.Maybe they share similar views about us.Don’t care enough to find out. Well, I have some news for you. Try shifting house and you will realise that nobody cares a fig. So much for your good neighbours.
4. Doctor is familiar with my ailments. From my personal experience, moving to a new location meant that a new doctor was looking at my family’s health niggles in a completely new way, giving us solutions and more importantly sparing more time for us. As we settled in the old neighbourhood, our Doctor’s practice flourished which meant that he was overworked. Every visit to him was an ordeal of waiting long hours at the Clinic.
5. Value of the house has gone up in leaps and bounds. A paper and pencil exercise would however demolish this thought process. The human mind is incapable of handling the complexity of compunding returns. So we react in delight and awe when we are told that the Rs 8 Lakh apartment bought in 1990 is worth Rs 70 Lakhs in 2011. When we use the wonderful tool” excel”, the scales will fall from our eyes. The working for this example will reveal that the compounded annual returns is well 12 %, whilst a cursory calculation will show it as having appreciated 9 fold in 20 years. Experienced investors in Real Estate will tell you that unlike shares, good gains are made in Real Estate more in the short and medium term as compared to the long term. As we hold onto our real estate for very long, we will realise that the returns begin to diminish on a year to year basis.Also, newer structures translate to better amenities and therefore newer buildings in new localities tend to catch up with the older established localities. As I will demonstrate later with my personal example, it pays to book in a under construction apartment early so that we get the best rates and then sell the existing apartment at peak rates. We then get the best of both the worlds, besides getting the thrill of staying in a brand new apartment.
So I have taken Kahlil Gibran’s advice and used my existing apartment as a Mast rather than dropping Anchor.
Since I moved house recently, I have the following experience which I wish to share with all you reluctant folks. My family showed little or no interest when I booked an Apartment , However, not willing to take no for an answer I engaged my good friend , Architect Surendra Shirke to oversee the interiors of my house. Thanks to following my instincts, I had booked a 3100 Sq ft Penthouse at a very low rate 4 years back. Although the project was delayed, it shaped up beautifully. The involvement of my architect at an early stage meant that I could incorporate all the changes at the construction stage itself, thus helping us design our dream house.
As the house began to take shape, my family members began to slowly sit up and take notice. All talk of not selling our existing apartment was now discarded. Enthusiasm crept in and suggestions came in thick and fast. We sold our existing apartment at a good rate and since we had booked the new apartment at a low rate, we could afford to spend a substantial sum on the interiors. The new apartment was thrice the size of the old and just the pleasure of new plumbing was overwhelmingly great.
Finally the big day come when we had to move out of the old and into the new. Surprisingly, the anticipation of the “new” completely eliminated the “nostalgia” of the old. In retrospect, I feel that we overestimate the hold of our old house. Yes we will feel nostalgic.But we often confuse the event with the location. Events like births,deaths , progress etc happen in people’s lives irrespective of the location. To hold onto the real estate where it all happened is to sometimes miss the wood for the trees.