Thank God it's Monday #TGIF

Yes, you read it right - Do you thank God on mondays??.

I attended a talk in a professional forum today, it was on the topic "Holistic workplace".During the presentation, the speaker quoted some survey that said 66% of the employees around the world are "disengaged" and are not happy to go to work.( Rest 34% ,would be those who had miserable lives outside office and would have preferred devil over the deep shit, I thought :-) )

Coming back to the topic,I have had at least 10 -15 people who had told me over the  last couple of years  that they hated the job like hell. At least 60% of them had HUGE portion of their net pay being paid as EMI ( Car loan, Home loan, EMI for the latest gadget, personal loan to buy an unapproved plot, etc,etc). The latest conversation I had on EMI ...

(EMI = Easy Money from Idiots for the business people)

Ms. J: Hi IM

Me: Hi, How are you doing

Ms.J: Just finished a meeting with the CFO, he was all rude. Once I complete the Home loan EMI ( around 60 lakhs) outstanding, I would quit this job and mostly stop working thereafter.My husband's income is more than enough for us ( except for the loan)

Me: Oh is it??

Ms. J: True

Me: How much is the house worth?

Ms. J: 1 crore 

Me: Then why don't you sell that house ( where Ms J doesn't stay and it was fetching 15k ( EMI  > 60 Kpm) as rent per month- she never ever plans to get there), Short close your loan, Invest 40L which will provide you a monthly income if you need or let it compound.

Ms. J : Oh no! that sounds like a stupid idea. I will loose rental income, tax benefits, appreciation, blah,blah, blah...

Me; Fine , then why you feel that EMI and loan is a burden then?

Ms. J: Oh shit, I forgot ... I need to run to a meeting.

----------------------------------------------------------------------

If you are a shareholder of a GOOD bank that lends to retail, you can very happily proclaim- "Thank God , it's Monday" . #TGIF. 

What constitutes a GOOD bank is a bigger story :-) and would need to write a book on that!!

House - Rent Vs Buy - Calculator ( Biased or Fraudulent!)

I found this " Home- Rent vs Buy" calculator on a famous property website.

 I gave the following input to check the site's recommendation.

Results from the website:-

At the first glance of the result , you will feel that only a foolish person would live on rent and the output says that you tend to gain in crores when you buy a house at the "inflated" prices.

The reality is that

1. The calculator is silent about what would you do with the "down payment" money if you are not buying a house.

2. The calculator is also silent on what will you do with the differential EMI money ( EMI- Rent, if  you stay on rent)

The fundamental assumption behind the calculation is not transparent and the intention of the site is clearly to sell you the over inflated property.

After reading the post, if you are not able to get the correct calculation for  " Rent Vs Buy" decision, a primary school maths book can provide you greater assistance.!

Happy Renting!!

Is it a wise decision to buy or rent a home?, inflated real estate prices in India  India housing bubble, rent to price ratio, will the bubble burst, when will real estate prices come down in India?