Stop the ongoing real estate monetisation scheme

Discussion in 'Must-Read Interviews, Articles & News Items' started by Vidhi Khanna, Jun 8, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

    Mar 19, 2015
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    My grandfather used to tell me about the abundant availability of rental housing in Mumbai, though at high levels during the time (probably the 1930s) when he first started working in the city, then Bombay. To save on rent he used to surrender the premises to the owner when he took his annual vacation back to our ancestral village in Rajasthan every summer, as he always got back either the same premises or in the same building or area. Retail home loans were unheard of and only rich businessmen or trusts floated by them owned buildings. Everybody else stayed on rental premises. The party lasted till the Second World War, when the Rent Control Act first came in (and stayed on as an unwelcome guest till now). Real estate rental yields were never the same again. The capital gains on real estate in those days were never high anyway and the absence of loan availability ensured the common man did not have the ability or incentive to purchase his own home. The governments wanted to encourage investment in real estate because of its known positive impact on the overall economy.

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