2 Jun 2009

Difference between Investment and insurance in real estate

I have been thinking...for a long time now.. i have dropped the very idea.. i began to think of it recently...dropped the idea...and now rethinking over my decision...which way should i go?
I am thinking of the options in hand..available money...how much cash i will need... and especially.. what do i need? Is buying a home only the product of my whole career? Initially i was thinking of taking a rented place somewhere in some cheaper place but eventually...when the monthly rental crossed a little over my HRA i began to think WTF!!! Why should i be paying more money for such a room at such a place? Then i began to slow down my thoughts and made some research..took suggestion and advise from my friends and seniors... now i am wrapping all up and trying to align all those thoughts to effectively give an action..

Since i am working in a bank and have been provided serious drop in interest rates for housing loans (but with a limit) i am reconsidering again and again on how to go about it, if i have to and supposed to cross the bridge!! I can avail housing loan, vehicle loan and personal loan to buy the house, and take up rest of the amount as employee loans from the bank itelsef a slightly higher interest rate. Now all these LURING options are making me delirious and tempting me much more.

Despite this investment in home, i have invested in rea estate for short term finance (everyone knows of it). Here i wish to emphasize that such short term investments are investments whereas investment in Home is Insurnace. And financially speacking (being an MBA student) i have to decide between Insurance and Investment.. i have already invested a huge amount in the scheme, now i have to relive that yield into insurance in a smooth acquisition...insurnace over investment. Since it takes a lot of calculation and i am not much far behind in such investment calculations, which my friends are quite aware of...i am still sleeping with my RIM mobile in calculaor mode :)

Eventually, its all a matter of choice and not chance...like Matrix. Take the blue pill and you will wake up forgetting everything, take the red pill and you will wake up in reality with the vision to see the matrix. Unfortunately for such investment problems in life, there is no Red or blue pill nor there are any books on finance that can suffice the needs pratically. Hence that leaves me and my plain simple logical mind, which has not been able to come up with a simple logic with what i need. If i dont have the requirement, why take the long route and worry for what is not needed and can be afforded , maybe with a little extra money !! It will lead me to the same event of happiness, in the scafold of life. Whatever be the reason i wrote this blog for, i bet , the one who has been following it has got the reason and idea why!

Oh by the way, i am planning a trip to either of the following destinations. Lakshwadeep, Pondicherry or Dwarka in Goa. If you guys know anything or have ben there before....please please please... advise me for a convenient stay and wonderful time. See you around guys


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