Buying a home

we bought a flat in Andheri (E) in Feb, 06 when the property prices have sky rocketted. Now we suffer from the burden of paying a very high EMI and live with the fear that the price may crash making our investment a very suspect decision.

we made the mistake of buying when every one was buying. Had we bought two years back, we would have got the same flat atleast 30% cheaper. This I write so that someone can learn from my learning and benefit from it.

we should have bought the flat when economy was in doldrum and no one could see any hope for future and everyone was predicting a dull future. I now know and believe its extremely unpredictable how the ecomony and a country will do in such a dynamic world environment where anything major anywhere else in the world can make all the predicts eat humble pie. I have studied/observed the share market and Indian ecomny for the last 10 years and Im convinced that everything is cyclical in nature. Sensex will fall and the low will appear as if its there forever but it would rise and then fall again. One fall and one rise in a lifetime enough to make one rich. when the sexsex falls, just buy into blue chip companies having large asset base like SAIL and BHEL in India and wait with patience and hope. One dont have to be a wizkid to indentify the multibagger, just common sense is good enough to make wealth. The tide will turn and throw handful of wealth in your lap. Samething goes for purchase of flats. Buy when no one is buying and sell when everyone is rushing to make that home purchase.

If what Im saying makes sense to you and you benefit from it someday, then come back and make the donation here. For further discussion, please write to mnish11@yahoo.com

I have learnt this lesson the very hardway and now I wait to practise it. I will tell the same thing to my son. I hope he will listen to me.