Real Estate & Why a big no!

Wife: See there are so many ads from magic bricks, we should buy some property it is the best investment option...
Mom: Son, property prices always go up, Why don't you invest in real estate.
Dad: I know you have already taken a house, but what is the harm in buying a second house ? It is an investment which only appreciates
Relatives: You have not yet bought a house/ second house ?
Friends: Take it & keep it, you are a rich guy... You cannot trust the stock market. Real Estate you can actually touch and feel it

So these are the arguments that go for any individual. People coerce and push you to the limits to acquire either a single house and if you have already bought one, a second house! Do you succumb to the pressure?

I always make it a point to visit each and every property exhibition @ Navi Mumbai... for one my wife loves the stick ice candy and they are typically sold @ these exhibitions, and two we get to see how a 10X10 sft room is made to look like a palace through smart interior designs, though that is not the purpose for which the exhibition is held.

Beyond this, I have been noticing that the participation of the crowds is only thinning and the number of exhibitions are only increasing... Does this mean that the supply is more than the demand ? Seems so!

When I visited Shanghai, Tokyo, I noticed that the residential buildings are really skyscrapers and the buildings in Thane, Navi Mumbai dwarf in comparision! A logical question is, if we do not have space laterally, why don't we build vertically ? The answer is the FSI in Navi Mumbai is pretty low. Question no 2, Why is the FSI low ? A possible answer is, the prices drop like a stone or the construction quality is not good enough to warrant skyscrapers.

I also noticed that the property prices in Mumbai prime location like Nariman point has only come down! We had an office in Nariman point which we had acquired @ 35,000 INR per sft back in early 2000. Reccently concluded the deal by selling it @ 29000 and that too to a SOBO (South Bombaite) as they fashionably call themselves. The prices were actually hovering @ 27,500 - 28000.

This brought me to another conclusion. We Indians are an emotional lot when it comes to personal property buying. This guy was buying the property for his son in the US who would come back and setup an office. Instead of looking @ BKC or any other upcoming location he was hell bent on Nariman point as it was a booming district in his growing up years. So the conclusion from the above two is that:
      Property prices do go down
      We make emotional decisions and inflate the price

Apart from this there are numerous anecdotes I can share where the property prices have infact come down. My brother in law was in 2007 a proud owner of a brand new flat in I town area of Visakhapatnam, bought @ 90 lacs odd. In 2009 - 10 a dispute between the Indian Navy and the port trust started wherein the port wants to expand. So the property prices have tumbled in the I town area. You certainly cannot predict such situations.

Last but not the least, whenever you try to buy property, there is a white component and there is a black component. The black component is the invisible money, builders give you multiple reasons for the black money component:
      It will reduce the cost of registration
      It is for the higher ups.
     

How does studying Law help a business professional ?

The day I enrolled myself to do an MBL from NLSIU, I have been plagued with questions.

Why am I studying Law ?
How do I expect it to help me in my career ?
How do I manage studying the flagship course of the best law school in India with a son who is 2 year old ?
Does it disrupt the work life balance ?

Reading and writing is my passion. I took a hiatus for a few years to be involved in building a family and watching my child grow. This was a fascinating stage and, you know that getting involved into the day to day rigarmarole of family life does leave an impact on your passions.

To get back to the question, Why am I studying Law ?
Reason no 1 would be, over the past 2 years, with a loving wife who added 20 kilos to my belly and an office which is just 6 km from home in Mumbai, I was sort of slipping into a comfort zone. Henkel, where I'am still working as I write the blog has been the organization where I have served the longest till date. So a nice family, a workplace close to home and a profession which I can just sleepwork. Time to get out of the comfort zone.

I personally need the rap and fear of exams to be able to divert my attention and bring it back to the world of books. Why Law ? During the 10 years of career, I have found that the only fear of any business man or corporate is to be caught on the wrong side of law. Apart from that this represents a challenge of epic proportions to me. Sit and study law OMG!!!

and ofcourse as a purchasing professional, I'am signing contracts and dealing with external agencies day in and day out. The last thing I want is to be personally or professionally on the wrong side of law as it damages both me and my organization. Further, many a time we know how to deal effectively with our partners so that we build a lasting relationship. For eg, when an offer is made and accepted a contract is deemed to have formed. So if one of the parties reneges on the promises, it can be brought up as a breach of contract. How many times, in your career have you had a purchaser or a seller renege on the promises made and accepted by just dropping a simple mail to you ?

You seem so helpless!!! Not anymore really. I can give countless examples where a thorough knowledge of business law helps a business professional deal effectively in every negotiation.

How do I expect this to help me in my career ?

Don't you think I will be better respected and better able to close deals more favorable to the organization ?

How difficult is it to study a flagship course from the premier law school of India ?

No words, It is absolutely tough, but then if it were so easy would we be proud of doing it ? The best thing to do is be disciplined, babies need more sleep than adults this is the only mantra I can suggest to you. You study 1-2 hrs everyday that should do the job for you.

Does it disrupt work life balance ?

Well it is both a yes and a no. Yes because you need to spare an hour or two and as the exams near you need to be absolutely focussed on the subjects. No because you can still spare sufficient time with your loved ones if you can sacrifice a bit of the news hour and a bit of other activities to ensure that you still get to maintain your balance. Just that the balance shifts.

So I shall keep writing, you can keep reading!!!