Subsidy - Different
Perspective!!!
By Mr. B. Padmanaban, Financial Planner,
Fortuneplanners.com, Chennai
I strongly believe many will not agree what I have written
below, my only request is to see in a different perspective, probably some of
you might appreciate!
Subsidy - A subsidy is a form of financial aid or support
extended to an economic sector (or institution, business, or individual)
generally with the aim of promoting economic and social policy. This is the
definition from Wikipedia.
Today, many middle class Indians are doing the same job to the
other middle class or lower middle class, without knowing that they are doing
subsidy. Unbelievable, but, it’s true!
Today, one individual can not stay more than one house at any
point of time, many Indian still believe that real estate is the only asset
class and keep investing in that, believing that it is a good form of
investment. Obviously the second, third, fourth house of them will have to rent
it out.
City like Chennai, middle class Indian have two choices either
he can buy a property worth Rs. 75 Lakhs and paying Rs. 75, 000 EMI for the next 20 years
so that it will be their asset after 20 years time.
The second choice will be
going for a rented house, where in they need to pay Rs. 15,000 per month and can save Rs. 60,000.
Moreover, in the rented house he can choose bigger, better house in case
future demands.
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| B. Padmanaban, Financial Planner |
How ignorant to lock their money at the beginning of their
career where the salary is lesser and forgoing the biggest opportunity for
creating wealth in Mutual fund through power of compounding!
The way I look at the house owner (those who have more than one)
is the good-hearted man and he is subsidizing his wealth for the fellow human
being by renting it out. The beauty is, today many house owners are in a
philanthropic mood to create as much subsidy as they can! They are deserved for
some tax benefits!!!
The biggest irony is paying Rs. 75,000 for 240 months after that the
house is hardly anything never bothers many of their mind, but paying Rs. 15,000 month
on month everyone feel that it is the waste of money!
I called this as forced belief. It is not from our original set
of belief, it is forced by relatives, friends and society over a period and we
tend to believe after that!
Moreover, housing loan is the kind of addiction and many Indian
addicted to it, till they retire and always trying to compromise their life for
50% of their income or lesser than that.
We all came to this world only as a rental basis; nobody is
going to be here permanently, when our life itself is on rental basis, and how
ignorant many of us are buying more and more property by scarifying their
entire youthful life! It’s not for the wealthy people, whose life will not
affect when they bought property and I am addressing only for the salaried
middle class to upper middle class!
Fortune planners
Old no 5, New No 9, Kuppusamy Street,
G1, Lotus Apartments,T. Nagar, Chennai – 600017
+91- 9884349173 , +91 – 24817374
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