The Home Loan Deposit

August 21, 2014 1 Comment


wealthymattersThe Reserve Bank of India (RBI) has decided to encourage banks and individuals to be actively involved in home loan deposits, a savings product that will help showcase the repaying ability of customers seeking to borrow money to buy a house.

The RBI feels that there is a felt need for financial innovation with respect to loan products and one such product could be savings-induced home loan or a home loan deposit.

The willing customer will be induced to generate a savings balance by way of monthly or periodic deposits. This will enable the creation of a track record for repayment of future home loan products. Once a customer reaches a threshold balance, financial institutions will consider sanctioning a housing loan. The balance in the product would act as a collateral or margin. The amount deposited every month would act as the basis of assessing repayment capacity of customers for calculating their monthly repayments.

Such a product will aid the Indian government’s efforts to promote affordable housing. The government has already laid out a plan to create 100 smart cities with the aim of “housing for all by 2020“ while reducing interest rates on home loans. This product may help lower interest rates as well, with better appraisal of potential borrowers.

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Go Work!

July 26, 2014 Leave a comment


Go Work!

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Taking Up With Billionaires

July 23, 2014 Leave a comment


WealthymattersThese days I come across a lot of women who are keen to exchange their beauty to enjoy the benefits of some or other man’s resources.Most of them cut pretty poor deals and the others cut one or other good deal only to lose the benefits they just gained via the next poor choice they make.The following is a reality check for women trading on looks to get ahead:

‘We are happy that we were able to reach an agreement for the benefit and well-being of our son, Augie.’ With these words Linda Evangelista and Francois-Henri Pinault closed a fiercely fought child support battle.

Canadian-born Linda Evangelista is a Vogue cover model many times over, including on the current Italian Vogue.She was one of the biggest names in modeling in the late 1980s and early ’90s,At the height of her career, she famously said supermodels ‘don’t wake up for less than $10,000 a day.’

Pinault is CEO of PPR, a holding company that owns Gucci, Yves St. Laurent, Bottega Veneta, Boucheron and other fashion lines. Forbes estimates his family’s net worth at $13 billion.He supposedly makes about $4million a year.Ladies,here’s the first thing to note: declared incomes and estimated wealth are complex issues.

The intercontinental twosome dated – sporadically, according to Pinault  – over about four months in late 2005 and early 2006. Augie was born in October 2006.After Pinault told Evangelista he didn’t plan to raise the boy with her,he supposedly wanted her to get an abortion , she willingly paid all the expenses herself at first from her roughly $1.8million-a-year income.But when a big contract with L’Oreal ended she needed Pinault to chip in. Read more of this post

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10 Tips To Price Your Home Right

July 17, 2014 Leave a comment


wealthymatters1 First things first–make a list of similar homes sold around you. Understand how yours is different from those.

2 Next, take stock of homes that are on sale in the area. Go talk to owners, maybe tour the houses to understand what’s on offer.

3 Talk to property agents. They could handle the first two steps for you but it’s best if you do those yourself to get a realistic number.

4 Let the agents conduct a price survey in your area and come up with their number.

5 Since you have done your homework well, don’t be misled by agents who offer the moon.There is something fishy if all deals in the area have been under 1 crore and an agent says he’ll get you 1.3 crore

6 Understand market conditions. The price that a buyer will be willing to pay is also dependent on market sentiment. Read more of this post

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The Why’s And How’s Of Buying Agricultural Land

June 26, 2014 Leave a comment


wealthymattersHere’s what John Malone, the founder and chairman of Liberty Media,who owns an estimated 2.2 million acres of U.S. cropland, ranch land and woodland and so is the largest landowner in America has to say about why he invests so heavily in agricultural land:

“Productive land is one of the very few permanent values throughout history.In the long view in real dollars,cropland is probably best, because it’s producing a commodity that is consumed by a world market.To me it looks like one of the safest places you can invest money is productive land.”

So does this make you wonder what sort of returns North American farmland generates?Here’s your answer:

Over the past decade North American  farmland has generated annualized returns of 13.9%.

So what questions does Malone ask before buying agricultural land?Here they are:

Does it make economic sense?

Does it bleed money or is it self-supporting and self-managing?

Do I have to get involved in day-to-day operations of the business, or does it have competent current management?

Does it represent economic diversification for myself and my family?

There’s no reason why this can’t be your check-list and mine too while buying agricultural land.

 

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