BizNpersonalfinance: Two math teachers erect a property empire with some nifty math
Amit had asked a question in the Indian Economy Blog whether the readers thought that Indian property market was a a bubble and I replied in comments, thus:
- when some one who has graduated a year ago from a silly small time commerce college and now a BPO employee is discussing about how he bought a Rs.20 lakh appt. and how it has appreciated by 50% in a year already.
- When you start hearing above repeatedly from different people, every time you are in the loo.
- When housewives start becoming real estate agents in droves to earn an extra buck.
- when you tell a real estate agent that you budget is NOT a crore for a small bungalow, and he then barely gives you any attention.
- when those 1 crore bungalows appreciate by 25-30% in the next year.
- when god forsaken out of town locations are touted by builders as ‘annexes’ to well known areas and marked up for being ‘annexes’. When the floating population buys these in droves and calls it the next hot and happening area and jacks prices to crazy levels. "
But speculation it seems is not happening just in developing economies like ours. The Guardian has done a fascinating piece on 2 math teachers in Kent, who have built a multi-million dollar empire by buying houses and renting them. And to think that at some point in their lives they had to sleep in a park....
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"sure there is. how do i know?
- when some one who has graduated a year ago from a silly small time commerce college and now a BPO employee is discussing about how he bought a Rs.20 lakh appt. and how it has appreciated by 50% in a year already.
- When you start hearing above repeatedly from different people, every time you are in the loo.
- When housewives start becoming real estate agents in droves to earn an extra buck.
- when you tell a real estate agent that you budget is NOT a crore for a small bungalow, and he then barely gives you any attention.
- when those 1 crore bungalows appreciate by 25-30% in the next year.
- when god forsaken out of town locations are touted by builders as ‘annexes’ to well known areas and marked up for being ‘annexes’. When the floating population buys these in droves and calls it the next hot and happening area and jacks prices to crazy levels. "
But speculation it seems is not happening just in developing economies like ours. The Guardian has done a fascinating piece on 2 math teachers in Kent, who have built a multi-million dollar empire by buying houses and renting them. And to think that at some point in their lives they had to sleep in a park....
