July | 2012 | wealthymatters

Community Land Trust

July 16, 2012 Leave a comment

The concept of Community Land Trust (CLT) is something interesting I came across today.

In CLTs, a not-for-profit organisation builds houses on subsidized land and gives them at a price much below the prevailing market rate. The condition is that when the buyer resells the apartment, the price has to be below the market rate prevailing then. This ensures that the subsidies are passed on to the subsequent buyers and the prices are kept at affordable levels for a longer period.

This model can be tweaked to suit local conditions. The State governments can sell or allocate land to cooperatives at subsidised prices to build affordable housing on CLT model.

This model has been successfully adopted in many cities across the world. For example, in Cooper Square land trust project in Manhattan,(pic above), the rentals are below 30 per cent of the tenant’s monthly income, while in the surrounding area people spend 50 per cent of their salary on rent.

Filed under Theory Tagged with Community Land Trust (CLT), Cooper Square land trust project in Manhattan, postaday, realestate, rent, rent rate, rental, resale apartment, subsidized land

Affordable Housing Defined

July 16, 2012 1 Comment

The Government of India defines affordability as follows:

For lower income group, apartment should not exceed four times the household gross annual income. For the middle-income group, the prices should not exceed five times the gross annual income.

Similarly, the rent should not exceed 30 per cent of the monthly salary for the lower income group. For the middle income, it should not exceed 40 per cent.

In other words, for a middle-income family, which earns Rs. 30,000 a month, any apartment costing more than Rs.18 lakh is unaffordable.For the poor who earn about Rs.10, 000 a month, apartments priced more than Rs. 5 lakh is unaffordable.

This is something to think about when investing in real-estate.

Filed under Theory, Tool Kit Tagged with affordable houses, affordable housing, Investing in real estate, lower income group, middle income group, postaday, real eatate, rent

Carpe Diem

July 16, 2012 1 Comment

Carpe diem quam minimum credula postero – “Seize the Day, putting as little trust as possible in the future” – Horace

Ode I-XI “Carpe Diem”
-Quintus Horatius Flaccus

Tu ne quaesieris—scire nefas—quem mihi, quem tibi
finem di dederint, Leuconoë, nec Babylonios
temptaris numeros. ut melius, quicquid erit, pati!
seu plures hiemes, seu tribuit Iuppiter ultimam,
quae nunc oppositis debilitat pumicibus mare
Tyrhenum. Sapias, vina liques, et spatio brevi
spem longam reseces. dum loquimur, fugerit invida
aetas: carpe diem, quam minimum credula postero.

Translation:
Ask not—we cannot know—what end the gods have set for you, for me;nor attempt the Babylonian reckonings Leuconoë. How much better to endure whatever comes, whether Jupiter grants us additional winters or whether this is our last, which now wears out the Tuscan Sea upon the barrier of the cliffs! Be wise, strain the wine; and since life is brief, prune back far-reaching hopes! Even while we speak, envious time has passed: pluck the day, putting as little trust as possible in tomorrow!

Filed under Theory, Tool Kit Tagged with be grateful, be thankful, Carpe Diem, Horace, Ode I-XI “Carpe Diem” -Quintus Horatius Flaccus, postaday

THOUGHT FOR TODAY

July 15, 2012 Leave a comment

Soul Writings

David and Michelle Booth

Shared by “Wendy”

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Filed under Tool Kit Tagged with building self esteem, parenting, postaday, self esteem of children

Harsh Mariwala On His Family Business

July 15, 2012 Leave a comment

Professional managers can help family businesses grow: Harsh C Mariwala, Chairman & MD, Marico

I joined my family business in 1971. My family, a large joint one, owned diverse businesses collectively managed by family members. The businesses ranged from trading to manufacturing, but none leveraged any significant brands. In this backdrop, I strived over the subsequent two decades to create a distinct identity for a successful brand-basedFMCG business.

Still, in 1990, when we carved out the FMCG business into a new company called Marico, it was a leap of faith for me personally and a quantum jump for the business, which then had a turnover of Rs 80 crore. The separate corporate existence did impart a sharper focus and enhanced the growth potential. But it also held out a challenge — how would a new, unknown company attract talent? Read more of this post