time has changed so fast that even the top CEO of company who are billionaires are coming to collaborating with content creators who have less money as compared to them but have more social currency from them....but hats off to the dedication creativity level and consistency of a aevy TV...learning a lot from you guys
I was wondering why owner of Zerodha is collaborating on this video. Then I get it. If someone buys a house, they won’t have enough liquidity to put money in share market. And guess who loses on it. Exactly! Pure marketing genius by Zerodha 😂
He’s missing 1 major issue in renting v/s buying: nakhre of landlords, increasing rent every year & looking to shift to new places every few years due to rent/ other landlord issues
Biggest issue I have with renting is what will one do post retirement? Without pension, one cannot afford rent and to move if owner asks you to. Renting is not all today as these kind of videos make it out to be.
As an area starts to develop the rent and the prices of properties around automatically start to raise, or it's a loss for the land owner especially in a rapidly developing area like somewhere in the outskirts of the urban city
He can afford to buy a house at any point of life but the young middle/low class people wont be in their 40s as they would have a lot of dependents in family. Also if he is not seeing property appreciating in his area that does not mean the entire country is like that. Talk to anyone in Bangalore, Gurgaon, Jever or Noida, prices has been increasing like 15-20 % every year.
Flawed argument because you along with most people are not aware of the legal laws that help tenants. Such as a landlord has to give minimum 48 hrs notice before he can visit, frequent visits/calls can be taken as harassment and complaint can be filed against them, and many more laws that protect tenants. Secondly, why the heck will landlords keep harassing you if they want your money? Gone are the days when that was a real thing. Rent does increase but no more than 5 percent a year practically, you can even Make a longer staying lease agreement for no rent increase in return. I have stayed on rent at the same flat for over 7 years now and the rent has been raised only twice during this period, that too very reasonably. And your EMI is going to be 3-4 times that of rent for another 20-30 years, during which period you never really "own" your house. And actually wind up paying 4-5 times the cost you thought you were going to buy the house for. Not to mention hidden costs such as enormous maintenance fees every month plus repair costs, interior costs, property tax every year and so on. And of course zero flexibility of moving to another city/country if you get a better opportunity or simply are fed up of the place you're staying in. Have you thought what you would do if the place you were staying in collapses because of an earthquake or gets burned down or gets completely damaged in floods, as is very common in Bangalore, Mumbai and Delhi? But I know, you still think buying is better because "papa/mummy ne bola hai ghar apna hona chahiye" . Go head friend, please buy if you have not already bought and stay poor for the rest of your life and pass on the same financial burden to your kids. Typical indian middle class mindset 😂
Just completed the video and it's amazing. I understand it's long already but I really hope you can make a part 2 for this video and talk about the following: 1) Excess inventory aka projects completed but unable to sell. 2) Builder defaults - Builders with excess inventory taking up more and more projects and get stuck in a loophole and finally default. 3) Importance of RERA 4) How making registration tax negligible (as close as zero) will reduce black money combined with higher property taxes. 5) Break-up of construction cost vs land cost to show how construction cost is actually negligible and the main blackmoney goes towards land cost.
There are 000s of apartments in Bangalore that have legal issues and also hand been financed by leading banks and also cleared by lawyers. A buyer has to be aware of all the legal requirements and not rely on banks and lawyers
This is now at next level, all billionaires don't own home is like a joke of the year.. this kind of philosophy comes to mind after they all settle up their life first and thinking to settle their extra money and then thinking not to own new house and rather rent it. They do already have lots of properties or invested and they told this philosophy to normal peoples. BEWARE :: ALERT atleast one home must be there for you or your family where no body kicks you or your family out anytime. if you own 2 or more then above video will be helpful.
I live in a small town in Assam. There the prices have risen higher than many big cities, even metros. This happened just because people use it as a way to turn their black money into white
I just noticed a Funny and Fabulous Point here by just checking the Thumbnail or Title. Overall message of the Video is don't buy a House instead Invest this money at other Places instead of Real Estates. People will save more, invest more, but where? In Stock Market and Zerodha is the King when if comes to Stock Market investing, which is Founded by Nikhil Kamath and Nithin Kamath. That's is why Nikhil Kamath collaborate for this Video ✌️🤝🙌 Ese hi nahi Billionaire ban jate bhai 😂
Every one enjoying and liking this video will be eventually buying a house . I had the same thought process 10 yrs back, paid 40 k rent for a big white house kinda house in North Delhi. One disagreement between the owner and me over parking was enough for me to realise the importance of owning a house.
Nikhil Kamath runs a stock brokerage firm, obviously, he'll recommend stocks over real estate! being the most prominent brokerage firm, they will have the benefit.
The only billionaire who defeated vishy anand in a chess match. Edit: No hate to anyone. I wrote this sarcastically, didn't expect the likes and replies.
This is an amazing concept of passing on the message via full skit , this concept helps us to understand the content more in dept. Kudos to the Varun bhai and team ❤❤
Anyone who believes renting is better than buying in the long run...you better get ready to struggle lifelong don't compare yourself to billionaires..stop following TH-cam videos for life decisions..buy a house which you can afford. The issue is people want to buy things they can't afford but surely get a house very important...life isn't run on an excel sheet
Very informative video. However, I think there's a conflict of interest when someone like Nikhil Kamath (who owns a stock brokerage firm) is brought in to speak about the real estate market. Someone from the real estate market or someone neutral would make more sense as there's no way Nikhil Kamath is going to publicly say that the real estate market is a good idea.
I (M 25) bought a property that is approx 12km away from the city. My dream home is about to finish and we will be moving there in January or February, maybe. I got it in very sasta and now the place has started developing (lol to new owners). I don't know why im sharing it here but bross you can learn.
I understand its much better to rent for an average Indian and they should rent, but for someone like Nitin who can easily afford atleast a 10cr house without feeling a pinch in his pocket it doesn’t make any sense and its a stupid flex from him. If you can easily afford it then why not buy it since house is actually a necessity and no matter how logical you get your house is your house and its not a depreciating asset like a car, you at least earn 3% increment. Think of it as a debt investment
But atleast the people who are holding the property will be pushed to renting it out as they would be losing money if they just held it. Overall this would heavily increase the supply of houses available for rent and reduce rent more than increase it.
it's actually the other way around. People buy the property knowing FSI is limited. If FSI is increased, it generally DROPS value of land because it solve the "finite land" problem. This is why no one in India is increasing FSI.
@@motog-rocks6544 I m talking from the perspective of builders, the land wherein they could have build 5x the floors which they are building currently would have resulted building more and more flats, commercials which is great for builder's itself yeah price might have dropped because of high supply but if you take other countries example even with high FSI the property market is growing at stable rate.
@@motog-rocks6544 and other countries see India building horizontally rather than building vertically, building more and more horizontally spreading out your cities costs more road development, connectivity issues, and many more issues. Even with the FSI limitations Mumbai seems to be a world class city just imagine not having those FSI limitations, India would have already developed a high world class infrastructure in terms of residencial space.
FSI limit is there because unlike other countries, the road, water and sewage infrastructure do not increase as number of houses increases. If FSI is not restricted, everyone will build 25 floor houses in 1200 sq ft with narrow approach road and no sewage/ water connection. You can always debate that infra should increase, but common infra does not increase in India as easily and that is the fact.
Mr Kamath has advised a basic economic error of increasing the property tax to 1 percent of its value per year. This will immediately increase the rental values of our houses by multiple folds. Now our land values are close to those of manhattan, in future our rents will be more than that of Manhattan if property tax increases
Just thought the community post was a joke, but then an actual billionaire appeared. I see from this, the amount of effort you guys put in is incredible and unimaginable for a common man like me.Keep creating,Cheers!!!
The Sole reason of lower FSI is that, if government gives permission to build 20-30 floors, only a handful of companies will remain in the real estate market like Godrej, DLF, Ember etc. Small real estate developers might not have that amount of cash in hand to produce 20-30 floor buildings but they do create huge amount of job opportunities for labour class. This is why government can't do that
That’s a great insight.This is the side of the story they should have also looked into while making this video. Not to takeaway from anything that Achina has stated as facts in the video.
Here in Mumbai the price of houses has leaped 10 times compared to what they were 20 years ago. The same flat that costs 1 to 1.5 crore today for a 1BHK use to cost around 10-15 lakhs 20 years ago.
Ya that time my family bought 3 houses. Now I can't even buy one in Mumbai. I'll buy in usa or Europe. Cuz their houses are cheaper than mumbai now. And most mumbaikars doing same thing now.
Nikhil kamath has an agenda. He wants more people to invest in stocks which indirectly benefits him. Although I believe one should have diversified investment Real estate 70% 10-15 % gold 10-15 % stocks Rest in FD.
Property prices are proportional to the facilities available around the property . Facilities involve schools,colleges, hospitals ,infrastructure,metro, transportation,job opportunities,companies. There’s a township project at some distance . They used to sell at Rs.2000/sq.ft at launch 10 years ago but now the rate is Rs.7000/sq.ft in that area because no inventory available now. They launched new project nearby it at Rs.6000/sq.ft now. It’s now seller’s but buyers also offer exorbitant prices to acquire a property.
Mohak made a very good video on it too please ab hatrick kardo and mohak ke saath collab kardo pakka 300k+ before year end I know n always root for you guys and u will touch it !! And nice way to show varuns normal hair in wedding pics and not chapri phase 😂😂😂😂😂😂 also varun ne sabke baal ka bharta kardiya for videos what man !!
Amazing video! But I would differ on the increase in house prices in Mumbai. In South Bombay, the rent of apartments got an average hike of 20%. This was even covered by a money control article.
Rents have shot up due to the end of WFH in many industries and due to the fact that younger generation is opting for rent instead of buying. Property prices are actually stagnant, you are hit with the reality when you put your house for sale. Only builders inflate their prices for their new projects, their rates are far higher than the market reality.
I have inherited my father's house in Noida this year. We bought it 2011. Price of the house has increased after metro connectivity but after that it is same.
No buying is still better, don't listen to them.. Prices of New flats are always higher than they were 10 years back... And rent will also increase. Rents may not increase every year,but in every 5-6 years,rents are seen a cumulative rise... So buying is the best option in long run.. If possible buy near the outskirts.. in future it will be developed,so struggle for a few years may be 10
She is just telling all the information that my 10th pass uncle knows "in english and sophisticated terminology" and running his property business successfully.
There is a building near to my house, more than half of the units are lying vacant due to high prices since last 7-8 years. Now another better building is being constructed adjacent to it.
I work in financial advisory sector. And right now, since the last 2 years, real estate is going up like crazy. And maybe one ceo is not buying, but most rich people are investing heavily in RE either directly through properties or through REITs or other funds. A good apartment in Gurgaon Golf course road costs an average 7-10 crores right now.
There is no word used as 'black money' either the builders use the word 'cash' and the main reason for no increase/decrease in property price is due to the area which the building/ land is located
THANK YOU! I thought I was the only one facing this issue. But If you dream about buying a plot and building your own House in India, IT IS A COMPLETE NIGHTMARE! You have to grease palms left, right and Center and even after that you might not be able to build your dream house. Encroachment is another disturbing issue! You might find a nice piece of land and even be able to Build your house but the next thing you know there is encroachment and Shanty's cropping around the house making the entire locality go dowhill! But this is at least a start considering people are understanding the problem. Kudos to you.
Mumbai have skyscrapers. It actually have 5th largest numbers of skyscrapers in the world. 150m+. And many more are under construction. Mumbai currently actually a large construction site. Also Mumbai don’t have just FSI of 2. Depending on location, it can goes upto 5. Some builders also got fsi upto 12 after paying premium.
Mumbai is third world city if you compare with other Asian cities like Singapore, Hong Kong, Dubai, etc. Despite being financial capital of India and home of Bollywood.
Scenario 2 is half researched.. many factors are brought in conveniently and considered as static.. it is never a text book scenario.. ideal way is to take the real estate business as a case study and then put up scenarios/perspectives from both sides.. Also, genuinely Mr. Nikhil Kamath has to do more findings on appreciating properties then finding distress sale on Google.. after all he too is a broker
Appreaciate your efforts! Every episode gets better with new release! Just a small feedback, if you can keep rupees & lakhs/crores, instead of millions
Point 1:Even if fertility rate has dropped the life span of an average indian has increased, more nuclear families, any developing nation has not seen average property reduce in price. Point 2: Rental yields are 2-3%. Land value has appreciated over 7-8%. Total appreciation = 10% and lesser risk than stocks. Makes sense that Nikhil Kamath wants people not to buy so they buy stocks.
Don’t believe this video. Anyone who can afford to own a house should buy it. Your family will have a backbone for support. No excel sheet calculation can replace the peace of mind and stability you get by having your own roof above your head.
This concept may be viable for bangalore and Mumbai, other cities have different stories to tell. But covered a good topic in extensive level with different insights. Great work.
One fascinating realization from this video is that how the fertility rate today (&future) will be a deciding factor when it comes to real estate price 60-70 years down the line. No wonder finance is deeply rooted in our day to day lives. It's all about connecting the dots right.
The irony of this video is the fact that a billionaire who pays next to zero taxes is speaking to us that the government should tax the properties more, who primarily belong to the middle class. Such a time we all live in!
Renting a house at 2-3 percent of property value is not so true in practice. I was paying over 3% including maintenance charges while renting an apartment. On top of that 10% increase in rent on a yearly basis creeps in which causes it to go over 4% in a couple of years. This advice doesn't sound practical for most people with an average income.
8:27 though banks do try their best to check every legal aspects, unfortunately it still does not guarantee that property is legal and safe to purchase. In Mumbai itself there are so many properties which were approved by banks, disbursed loans but later municipal corporation simply stamp them as illegal with some or other reasons. Middle class has no other option but to keep paying EMIs and keep that so called asset with them which no one would be interested to buy untill it is clear. Banks are still at safer side as they keep getting EMIs from sophisticated, educated, working middle class who will never default. So do not rely on theoretical concept that banks will check legal aspects.
In a community post when Aevy asked whom to invite in the next episode, I chose BILLIONAIRE and commented Nikhil Kamath's name And here we go......They did the same. Thanks Aevy Team ☺️✔️💕
Tier 2 and tier 3 indian cities have two prices for the same piece of land which is almost 3 to 4 times of the price mentioned in the Agreement. Can you please throw some light on it?
i have worked in real estate and personally believe that housing prices especially builder societies and commercial projects will experience price crash. The best thing to buy is plots from govt. or people who bought it from govt. Builders are inflating prices and there's no point in investing or buying for yourself.
Please keep in mind , Bank managers are in hurry to lend loan and meet their targets. If property is under home loan , don't think bank scrutinizing carefully.
Always do the opposite of what the financial gurus tell you to do. If they want you to rent, buy it. If they want you to buy, rent it. You can easily build your own house for 40lakhs in tier 2 or 3 cities. No need to live in a disgusting city.
People Beware of India-specific problems There are land sharks and local criminals, goons supported by politicians and sometimes even the local police who will forcibly capture ur land or even ur house and u will be forever stuck in courts, police stations, death threats, this happened to us when our land was captured by a local goon in Gorakhpur, Uttar Pradesh, the police, court, politicians could do nothing about it and we lost 15 lakhs.😢😮😵💫
Too much power play of builders. Majority top builders already know about future plans and now they have started even selling flat at premium price in underdeveloped area. And another bigger problems are these investors. Every good flat one likes is an investors flat. The only way to stop this is to stop buying any flats. All of us salaried people need to come together and stop buying. Make them lose in crores and bleed some blood. This is the only way to teach these builders/politicians some lesson.
Huge property rates without justified amenities near it is just a scam for us. Also, these high property rates are one of the reasons for high priced market/goods. Any shop has a lot of rent because the owner of the land paid a high price for that. Now, these shop keepers have to take that money from you, thus, the price of any goods/service increases significantly due to this factor. Now, either you will get the product/service at high rate, or the quality would be poor.
Everything can't be measured in Excel sheets and no matter how many good financial decisions one make, death is inevitable. Home provides a sense of security and peace. Among finest things money can buy. So if you can afford to comfortably buy a home, buy a home.... And I hope Nitin kamat uses Uber for transportation and doesn't own any car cause car too is an depreciating asset
Hey! This is great content and I think this serves as an eye opener to those who are looking to buy houses and to those who are clueless about the sky rocketing prices of the housing sector.This answers a lot of questions . But one thing you have failed to mention is that the government , knowing fully well that the FSI is scathingly low for Indian cities as compared to other cosmopolitan cities, is trying to cater to the emerging local builders that are upcoming in the market whilst keeping the economy of the country intact.Again, this could be my point of view.Correct me if I am wrong.
What do you think about this situation - Option 1 - An early stage start-up offers equity at lesser valuation and when it becomes successful, it increases its valuation and dilutes less and as per their choice. Option 2 - A stock like Nykaa when launches comes at IPO is sought after as people believe it's value will increase and that increases its value. Option 3 - A builder with a legacy of building and executing, chooses a location and sells and as he develops, the value and prices of flat after launch increase till finishing. As per your video, Option 3 is artificial inflation and crony capitalism while there is nothing wrong with Option 1 and 2. Slow caps ...
I gotta comment this time. Your actual content is priceless. That's the reason I subscribed. But the short funny clips that you add makes me want to either forward or skip the whole video altogether. I don't know the reason you put these clips in between but it's my opinion to either remove them completely, or add something else. Other than that, I absolutely love your research and the actual content. Keep making more!
4:14 you can’t compare apples and oranges. When it came to skyscrapers numbers you compared it with Shanghai, NYC but when it came to floor space you are comparing to a prison. - NYC, Paris, Hong Kong etc are notorious for tiny apartment, just like that Mumbai also has some - most prisons are really outside, especially US that is 3rd largest country in the world in terms of area. - outside of downtown no US city has a skyscrapers, it’s really flat in that terms - lastly having so many floors will also be a drain on water and other resources. LA and California is already seeing huge water problems So when you compare the same things for every parameter.
Appreciate the effort your team put in to explain a complex topic... But still there are many more factors which have not been covered as to why one costs more than the other.. ex land A and B.. many more factors are still present within it.. just giving my take on the video.. 😃
Just realised, there should be TH-cam channel on property and real estate related cases, it's laws, its real time value in white and black, how builders do their buisness etc because there are countless videos on in depth stock market while i don't know if there are any on real-estate market
For Middle class indians having a "apna ghar" brings a lot of stability and psychological satisfaction.. For billionaires,they just can just build a house on any day they want! For middle class,it isn't the case... Prices are gonna increase, especially in big cities,more more youth are gonna migrate here as time passes.. there are hardly good jobs in Tier 2 cities.. So better buy a house,(if possible buy a plot ,even if you can't construct a house).. Because plot is limited... Flats can build and delapidated,but plot always remains
Black money angle is so damn true. In my hometown, it is extremely common. A builder will outright tell you that you have to oay 60% black and 40% white. Imagine the plight of a salaried person that even though he can get the loan from the bank he still can't buy a house as arranging 60% black in a 1.5 cr property is next to impossible for that person
just a suggestion guys, try and keep the bgm on the lower side. the bgm is a blocker when I try to watch the video at 1.5x or higher. also, keep up the good work!
When I used to work with a Real Estate Valuer, people often asked me about the fair price of a flat in a certain locality after they had already purchased one. I found it strange that they were discussing prices after buying a flat. I tried to change the subject by speaking positively, but I didn't understand the point at that time, and I still don't understand today why people rush to buy flats. Builders and brokers always know when to sell and when not to sell, and people have confidence in their decisions before buying a flat, but they seem to get confused after making the purchase. Buying a flat is like getting married-it's not easy to determine immediately whether it's a good decision or not. Despite this, everyone hopes to find a good partner in their life.
I am residing on a tier 2 city here in chennai, The real estate has almost reached the saturation point here as our location is surrounded with indian airforce, So the fSI is very low compared to other locations Also the area is filled up with more than 70% of independent houses only 30% and growing for apartments, which luckily gives us some good aircirculation on terrace till date, Also less populated area, I lively seen a drama, An apartment constructed in a mainroad opposite to a bus stop initially quoted a price of 65lakh for 2 bhk apts, Then covid came price dropped to even 55 lakhs not even a single buyer came across, now the builder himself transferred it into a PG HOSTEL, Cause rent has not increased too much in the last decade and new commers in our location are happy to give a 10-12k rent rather paying 30k+ EMI for 20+ years for a name sake owner of an apartment in the same building
Makes sense. I have always wondered if I buy a house for 5cr. How will I find people to resell the property , i mean there will be only few people to buy such properties at crazy rates. And there will be plenty of other options. Which makes my chances of sale go down.
with our current roads and FSI, we are not even able to provide traffic free roads. imagine if there are 25x people going to the same building than what are going now. imagine the extent of traffic jams! increasing FSI wont help much but rather create these buildings more inaccessible.
This is utter BS. First, properties usually do have an out, just not an emergency friendly one. And properties do some way or the other trail inflation, so you can expect it to grow as an asset. Until you do that, you can accrue rent. Even if it is 2.5%, you can use it for your monthly expenses. If you are going to use it immediately, you aren't really concerned with exposure to market growth rates and inflation. This is the primary reason people invest in properties eyeing old age income when there is a lack of pension or to supplement it. Second, you always get the no black money option. Stamp duty on registration is tiered. At price A, you pay 7L stamp duty, at price B, it is 12L. So, people try to save it in this manner. No one is buying money entirely on black money. You are trying hard to make a mountain out of a mole hill. Third, rental units keep you poor. You always send off at least half of your income to your owner. Instead, if you spend the same amount on EMIs, you will end up with an asset. Even those living in houses with the same prices get to enjoy living in their own property versus concerned with making rent every month. Finally, the property prices are actually not that opaque. You only talk of first party sale from builder to first owner. But after the first sale, the reference point is usually divulged by the broker itself. No one wants to scare you off rather they earn only when you spend. The problem with housing market in Mumbai is unique to it. Delhi, Bangalore and literally everywhere else has much more sane pricing. This video is a large skit and PR for Zerodha.
In Pune, even the outskirts where there is thin population, many project launch is happening as a villa and plot system and they are charging 1.5 to over 2 cr. Sometimes I feel that it’s only because many politicians are in this game that even lands which could be too cheap are expensive. And thing is that they hold these properties for long because they know that what they are charging and if buyers come even after 2-3 years as well, then also they are in profit.
Black money in property market has been there long before builders & in markets, where there are still no builders. One of the major driving factors for this is insane Stamp duty & taxes, that makes transfers less lucrative.
time has changed so fast that even the top CEO of company who are billionaires are coming to collaborating with content creators who have less money as compared to them but have more social currency from them....but hats off to the dedication creativity level and consistency of a aevy TV...learning a lot from you guys
He is making his name/face brand
Which is good
Dude Varun Mayya is millionaire himself
Bhai aap Varun ko nahin jante shayad
@@ziasmailbox well he is an entrepreneur
I was wondering why owner of Zerodha is collaborating on this video. Then I get it. If someone buys a house, they won’t have enough liquidity to put money in share market. And guess who loses on it. Exactly! Pure marketing genius by Zerodha 😂
Innovative sponsored video 🔥💯
He doesnt even market his own business
@@vfr45rfv he is doing the interview in his office space. He is advertising True Beacon.
You are smart on this point
@@vfr45rfv wrong. You know finfluencers shill affiliate links to open demat accounts. Guess who pays them.
Damn how the times have changed
Earlier people used to explain NFT with example of real estate, now we explain real estate with the example of NFT
That's what I was thinking! 😂
😂
@@yashxgx
face-green-smilingface-green-smilingface-green-smiling. How did u get this?
@@yashxgx what how did you get this emoji
He’s missing 1 major issue in renting v/s buying: nakhre of landlords, increasing rent every year & looking to shift to new places every few years due to rent/ other landlord issues
Biggest issue I have with renting is what will one do post retirement? Without pension, one cannot afford rent and to move if owner asks you to. Renting is not all today as these kind of videos make it out to be.
@@Whatreally123by then if you are not a billionaire then it's a waste of life time .
As an area starts to develop the rent and the prices of properties around automatically start to raise, or it's a loss for the land owner especially in a rapidly developing area like somewhere in the outskirts of the urban city
He can afford to buy a house at any point of life but the young middle/low class people wont be in their 40s as they would have a lot of dependents in family. Also if he is not seeing property appreciating in his area that does not mean the entire country is like that. Talk to anyone in Bangalore, Gurgaon, Jever or Noida, prices has been increasing like 15-20 % every year.
Flawed argument because you along with most people are not aware of the legal laws that help tenants. Such as a landlord has to give minimum 48 hrs notice before he can visit, frequent visits/calls can be taken as harassment and complaint can be filed against them, and many more laws that protect tenants. Secondly, why the heck will landlords keep harassing you if they want your money? Gone are the days when that was a real thing. Rent does increase but no more than 5 percent a year practically, you can even
Make a longer staying lease agreement for no rent increase in return. I have stayed on rent at the same flat for over 7 years now and the rent has been raised only twice during this period, that too very reasonably. And your EMI is going to be 3-4 times that of rent for another 20-30 years, during which period you never really "own" your house. And actually wind up paying 4-5 times the cost you thought you were going to buy the house for. Not to mention hidden costs such as enormous maintenance fees every month plus repair costs, interior costs, property tax every year and so on. And of course zero flexibility of moving to another city/country if you get a better opportunity or simply are fed up of the place you're staying in. Have you thought what you would do if the place you were staying in collapses because of an earthquake or gets burned down or gets completely damaged in floods, as is very common in Bangalore, Mumbai and Delhi? But I know, you still think buying is better because "papa/mummy ne bola hai ghar apna hona chahiye" . Go head friend, please buy if you have not already bought and stay poor for the rest of your life and pass on the same financial burden to your kids. Typical indian middle class mindset 😂
Just completed the video and it's amazing. I understand it's long already but I really hope you can make a part 2 for this video and talk about the following:
1) Excess inventory aka projects completed but unable to sell.
2) Builder defaults - Builders with excess inventory taking up more and more projects and get stuck in a loophole and finally default.
3) Importance of RERA
4) How making registration tax negligible (as close as zero) will reduce black money combined with higher property taxes.
5) Break-up of construction cost vs land cost to show how construction cost is actually negligible and the main blackmoney goes towards land cost.
There are 000s of apartments in Bangalore that have legal issues and also hand been financed by leading banks and also cleared by lawyers. A buyer has to be aware of all the legal requirements and not rely on banks and lawyers
This is now at next level, all billionaires don't own home is like a joke of the year.. this kind of philosophy comes to mind after they all settle up their life first and thinking to settle their extra money and then thinking not to own new house and rather rent it.
They do already have lots of properties or invested and they told this philosophy to normal peoples.
BEWARE :: ALERT
atleast one home must be there for you or your family where no body kicks you or your family out anytime.
if you own 2 or more then above video will be helpful.
Real estate is getting so convoluted and corrupted that buying a house or a piece of land is incredibly stressfull. Good video really engaging
Renting is always better if you want to live in a city, while buying is always better if you want to invest in a developing area.
everyone buys homes when you have money
@@fwefhwe4232 exactly
Underrated comment
I live in a small town in Assam. There the prices have risen higher than many big cities, even metros. This happened just because people use it as a way to turn their black money into white
Its the only correct answer. FSI and others are nothing atleast this time.
I just noticed a Funny and Fabulous Point here by just checking the Thumbnail or Title.
Overall message of the Video is don't buy a House instead Invest this money at other Places instead of Real Estates.
People will save more, invest more, but where?
In Stock Market and Zerodha is the King when if comes to Stock Market investing, which is Founded by Nikhil Kamath and Nithin Kamath.
That's is why Nikhil Kamath collaborate for this Video ✌️🤝🙌
Ese hi nahi Billionaire ban jate bhai 😂
1000 IQ😱
@Atul Anand 🤝🙌
@@YashVarshan Thanks Brother 🙌🙏
That's what Nikhil Kamath was there for.
crazyy 200 iq🤯🤯
Every one enjoying and liking this video will be eventually buying a house . I had the same thought process 10 yrs back, paid 40 k rent for a big white house kinda house in North Delhi. One disagreement between the owner and me over parking was enough for me to realise the importance of owning a house.
💯
True Bro.
Nikhil Kamath runs a stock brokerage firm, obviously, he'll recommend stocks over real estate! being the most prominent brokerage firm, they will have the benefit.
Also he can expense his rent out as ceo quarters.
Lmao @@princeofheaven19
nikhil kamath: i rent a house
*reality: this liar owns a 7000 sft house
Don't call him liar; likely his company is paying a rent to a company which is owned by a group company.
You guys are gem, continue to make such videos.
The only billionaire who defeated vishy anand in a chess match.
Edit: No hate to anyone. I wrote this sarcastically, didn't expect the likes and replies.
😂😂😂
by using the computer simultaneously, mention it too. 🙄
The only billionaire who used AI to defeated vishy Anand in a chess ♟️ match
By cheating
Forgot to add "using stockfish"
This is an amazing concept of passing on the message via full skit , this concept helps us to understand the content more in dept. Kudos to the Varun bhai and team ❤❤
faxx
Anyone who believes renting is better than buying in the long run...you better get ready to struggle lifelong don't compare yourself to billionaires..stop following TH-cam videos for life decisions..buy a house which you can afford. The issue is people want to buy things they can't afford but surely get a house very important...life isn't run on an excel sheet
Very informative video. However, I think there's a conflict of interest when someone like Nikhil Kamath (who owns a stock brokerage firm) is brought in to speak about the real estate market.
Someone from the real estate market or someone neutral would make more sense as there's no way Nikhil Kamath is going to publicly say that the real estate market is a good idea.
I (M 25) bought a property that is approx 12km away from the city. My dream home is about to finish and we will be moving there in January or February, maybe. I got it in very sasta and now the place has started developing (lol to new owners).
I don't know why im sharing it here but bross you can learn.
What do u work
I understand its much better to rent for an average Indian and they should rent, but for someone like Nitin who can easily afford atleast a 10cr house without feeling a pinch in his pocket it doesn’t make any sense and its a stupid flex from him. If you can easily afford it then why not buy it since house is actually a necessity and no matter how logical you get your house is your house and its not a depreciating asset like a car, you at least earn 3% increment. Think of it as a debt investment
its because he might still be sure of the city hell stay in long term, 10 years ? may be 12 ?
The burden 1% tax on properties which he proposed will be eventually transferred on to the tenants by increased rent prices
But atleast the people who are holding the property will be pushed to renting it out as they would be losing money if they just held it. Overall this would heavily increase the supply of houses available for rent and reduce rent more than increase it.
just imagine the amount of losses Indian developers are facing just because of FSI limitations in India.
it's actually the other way around. People buy the property knowing FSI is limited. If FSI is increased, it generally DROPS value of land because it solve the "finite land" problem. This is why no one in India is increasing FSI.
@@motog-rocks6544 I m talking from the perspective of builders, the land wherein they could have build 5x the floors which they are building currently would have resulted building more and more flats, commercials which is great for builder's itself yeah price might have dropped because of high supply but if you take other countries example even with high FSI the property market is growing at stable rate.
@@motog-rocks6544 and other countries see India building horizontally rather than building vertically, building more and more horizontally spreading out your cities costs more road development, connectivity issues, and many more issues. Even with the FSI limitations Mumbai seems to be a world class city just imagine not having those FSI limitations, India would have already developed a high world class infrastructure in terms of residencial space.
FSI limit is there because unlike other countries, the road, water and sewage infrastructure do not increase as number of houses increases. If FSI is not restricted, everyone will build 25 floor houses in 1200 sq ft with narrow approach road and no sewage/ water connection.
You can always debate that infra should increase, but common infra does not increase in India as easily and that is the fact.
@@Debraj1978 Totally agree
Mr Kamath has advised a basic economic error of increasing the property tax to 1 percent of its value per year.
This will immediately increase the rental values of our houses by multiple folds. Now our land values are close to those of manhattan, in future our rents will be more than that of Manhattan if property tax increases
rents might increase but buying a house might get cheaper.
We were missing MBA skits in many videos
Now finally having some nostalgia ☺️
Please enlighten me as to what MBA stands for.
@@IdOnThAvEaUsE69 It stands for Master of Business Administration
@@Shashank_ssm I'm grateful for your reply. Again, thanks a lot.
Just thought the community post was a joke, but then an actual billionaire appeared. I see from this, the amount of effort you guys put in is incredible and unimaginable for a common man like me.Keep creating,Cheers!!!
The Sole reason of lower FSI is that, if government gives permission to build 20-30 floors, only a handful of companies will remain in the real estate market like Godrej, DLF, Ember etc. Small real estate developers might not have that amount of cash in hand to produce 20-30 floor buildings but they do create huge amount of job opportunities for labour class. This is why government can't do that
That’s a great insight.This is the side of the story they should have also looked into while making this video. Not to takeaway from anything that Achina has stated as facts in the video.
Here in Mumbai the price of houses has leaped 10 times compared to what they were 20 years ago. The same flat that costs 1 to 1.5 crore today for a 1BHK use to cost around 10-15 lakhs 20 years ago.
Ya that time my family bought 3 houses. Now I can't even buy one in Mumbai. I'll buy in usa or Europe. Cuz their houses are cheaper than mumbai now. And most mumbaikars doing same thing now.
Nikhil kamath has an agenda.
He wants more people to invest in stocks which indirectly benefits him.
Although I believe one should have diversified investment
Real estate 70% 10-15 % gold
10-15 % stocks
Rest in FD.
Property prices are proportional to the facilities available around the property . Facilities involve schools,colleges, hospitals ,infrastructure,metro, transportation,job opportunities,companies.
There’s a township project at some distance . They used to sell at Rs.2000/sq.ft at launch 10 years ago but now the rate is Rs.7000/sq.ft in that area because no inventory available now. They launched new project nearby it at Rs.6000/sq.ft now.
It’s now seller’s but buyers also offer exorbitant prices to acquire a property.
Mohak made a very good video on it too please ab hatrick kardo and mohak ke saath collab kardo pakka 300k+ before year end I know n always root for you guys and u will touch it !! And nice way to show varuns normal hair in wedding pics and not chapri phase 😂😂😂😂😂😂 also varun ne sabke baal ka bharta kardiya for videos what man !!
🤣😂😂😂😂
Mohak is biased in political videos
Amazing video! But I would differ on the increase in house prices in Mumbai. In South Bombay, the rent of apartments got an average hike of 20%. This was even covered by a money control article.
Rents have shot up due to the end of WFH in many industries and due to the fact that younger generation is opting for rent instead of buying. Property prices are actually stagnant, you are hit with the reality when you put your house for sale. Only builders inflate their prices for their new projects, their rates are far higher than the market reality.
Dude why are we still calling Mumbai as Bombay? I know for people leaving outside Maharastra, it's cool. But for us, it just fucking hurts 😭
I have inherited my father's house in Noida this year. We bought it 2011. Price of the house has increased after metro connectivity but after that it is same.
No buying is still better, don't listen to them..
Prices of New flats are always higher than they were 10 years back...
And rent will also increase.
Rents may not increase every year,but in every 5-6 years,rents are seen a cumulative rise...
So buying is the best option in long run..
If possible buy near the outskirts.. in future it will be developed,so struggle for a few years may be 10
She is just telling all the information that my 10th pass uncle knows "in english and sophisticated terminology" and running his property business successfully.
There is a building near to my house, more than half of the units are lying vacant due to high prices since last 7-8 years. Now another better building is being constructed adjacent to it.
Zerodha founder indirectly saying: I want you hold stocks rather than piece of land or apartments. Seems biased to me
I work in financial advisory sector. And right now, since the last 2 years, real estate is going up like crazy. And maybe one ceo is not buying, but most rich people are investing heavily in RE either directly through properties or through REITs or other funds. A good apartment in Gurgaon Golf course road costs an average 7-10 crores right now.
There is no word used as 'black money' either the builders use the word 'cash' and the main reason for no increase/decrease in property price is due to the area which the building/ land is located
THANK YOU! I thought I was the only one facing this issue. But If you dream about buying a plot and building your own House in India, IT IS A COMPLETE NIGHTMARE! You have to grease palms left, right and Center and even after that you might not be able to build your dream house. Encroachment is another disturbing issue! You might find a nice piece of land and even be able to Build your house but the next thing you know there is encroachment and Shanty's cropping around the house making the entire locality go dowhill!
But this is at least a start considering people are understanding the problem. Kudos to you.
We have reached the era where NFT is used as an analogy to explain real estate 😅
4:27 Again MBA Roasted 😂
And Idea of This would have definitely came into the mind of None Other Than
"Varun Mayya"
Mumbai have skyscrapers. It actually have 5th largest numbers of skyscrapers in the world. 150m+.
And many more are under construction. Mumbai currently actually a large construction site.
Also Mumbai don’t have just FSI of 2. Depending on location, it can goes upto 5. Some builders also got fsi upto 12 after paying premium.
Mumbai is third world city if you compare with other Asian cities like Singapore, Hong Kong, Dubai, etc. Despite being financial capital of India and home of Bollywood.
Scenario 2 is half researched.. many factors are brought in conveniently and considered as static.. it is never a text book scenario.. ideal way is to take the real estate business as a case study and then put up scenarios/perspectives from both sides.. Also, genuinely Mr. Nikhil Kamath has to do more findings on appreciating properties then finding distress sale on Google.. after all he too is a broker
Appreaciate your efforts!
Every episode gets better with new release!
Just a small feedback, if you can keep rupees & lakhs/crores, instead of millions
Point 1:Even if fertility rate has dropped the life span of an average indian has increased, more nuclear families, any developing nation has not seen average property reduce in price.
Point 2: Rental yields are 2-3%. Land value has appreciated over 7-8%. Total appreciation = 10% and lesser risk than stocks.
Makes sense that Nikhil Kamath wants people not to buy so they buy stocks.
Don’t believe this video. Anyone who can afford to own a house should buy it. Your family will have a backbone for support. No excel sheet calculation can replace the peace of mind and stability you get by having your own roof above your head.
This concept may be viable for bangalore and Mumbai, other cities have different stories to tell. But covered a good topic in extensive level with different insights. Great work.
One fascinating realization from this video is that how the fertility rate today (&future) will be a deciding factor when it comes to real estate price 60-70 years down the line. No wonder finance is deeply rooted in our day to day lives. It's all about connecting the dots right.
The irony of this video is the fact that a billionaire who pays next to zero taxes is speaking to us that the government should tax the properties more, who primarily belong to the middle class. Such a time we all live in!
Renting a house at 2-3 percent of property value is not so true in practice. I was paying over 3% including maintenance charges while renting an apartment. On top of that 10% increase in rent on a yearly basis creeps in which causes it to go over 4% in a couple of years. This advice doesn't sound practical for most people with an average income.
8:27 though banks do try their best to check every legal aspects, unfortunately it still does not guarantee that property is legal and safe to purchase.
In Mumbai itself there are so many properties which were approved by banks, disbursed loans but later municipal corporation simply stamp them as illegal with some or other reasons.
Middle class has no other option but to keep paying EMIs and keep that so called asset with them which no one would be interested to buy untill it is clear.
Banks are still at safer side as they keep getting EMIs from sophisticated, educated, working middle class who will never default. So do not rely on theoretical concept that banks will check legal aspects.
In a community post when Aevy asked whom to invite in the next episode,
I chose BILLIONAIRE and commented Nikhil Kamath's name
And here we go......They did the same.
Thanks Aevy Team ☺️✔️💕
What a great content few months back I used to work in real estate i can relate each and every point!
Speaking of transparency, there is an app call Indextap. Which provides registration data of properties.
Tier 2 and tier 3 indian cities have two prices for the same piece of land which is almost 3 to 4 times of the price mentioned in the Agreement. Can you please throw some light on it?
Me being from a builder family I can agree with a lot of things. Great Video!! Keep Growing!
i have worked in real estate and personally believe that housing prices especially builder societies and commercial projects will experience price crash. The best thing to buy is plots from govt. or people who bought it from govt. Builders are inflating prices and there's no point in investing or buying for yourself.
Please keep in mind , Bank managers are in hurry to lend loan and meet their targets. If property is under home loan , don't think bank scrutinizing carefully.
SBI Home Loan is the answer
Always do the opposite of what the financial gurus tell you to do. If they want you to rent, buy it. If they want you to buy, rent it.
You can easily build your own house for 40lakhs in tier 2 or 3 cities. No need to live in a disgusting city.
People Beware of India-specific problems There are land sharks and local criminals, goons supported by politicians and sometimes even the local police who will forcibly capture ur land or even ur house and u will be forever stuck in courts, police stations, death threats, this happened to us when our land was captured by a local goon in Gorakhpur, Uttar Pradesh, the police, court, politicians could do nothing about it and we lost 15 lakhs.😢😮😵💫
Too much power play of builders. Majority top builders already know about future plans and now they have started even selling flat at premium price in underdeveloped area.
And another bigger problems are these investors. Every good flat one likes is an investors flat.
The only way to stop this is to stop buying any flats. All of us salaried people need to come together and stop buying.
Make them lose in crores and bleed some blood. This is the only way to teach these builders/politicians some lesson.
Amazing as always. Love your content!
By the way, what's the background music? It's pretty catchy
Huge property rates without justified amenities near it is just a scam for us.
Also, these high property rates are one of the reasons for high priced market/goods.
Any shop has a lot of rent because the owner of the land paid a high price for that. Now, these shop keepers have to take that money from you, thus, the price of any goods/service increases significantly due to this factor.
Now, either you will get the product/service at high rate, or the quality would be poor.
Nikhil Kamath’s deep fake is so close to the real guy!!!!! 😅
Editing & production quality just 🔥
Everything can't be measured in Excel sheets and no matter how many good financial decisions one make, death is inevitable. Home provides a sense of security and peace. Among finest things money can buy. So if you can afford to comfortably buy a home, buy a home....
And I hope Nitin kamat uses Uber for transportation and doesn't own any car cause car too is an depreciating asset
This housing problem is not only in bangalore it is all over india.
@5:20 it's not a pure sellers market only in Mumbai. It's all over India. There is huge demand but less supply.
Such an informative video with great visuals. Kudos to the production team
Hey! This is great content and I think this serves as an eye opener to those who are looking to buy houses and to those who are clueless about the sky rocketing prices of the housing sector.This answers a lot of questions . But one thing you have failed to mention is that the government , knowing fully well that the FSI is scathingly low for Indian cities as compared to other cosmopolitan cities, is trying to cater to the emerging local builders that are upcoming in the market whilst keeping the economy of the country intact.Again, this could be my point of view.Correct me if I am wrong.
6:45 wow now people understand NFT markets more easily as compared to real estate !! We have come a long way
What do you think about this situation -
Option 1 - An early stage start-up offers equity at lesser valuation and when it becomes successful, it increases its valuation and dilutes less and as per their choice.
Option 2 - A stock like Nykaa when launches comes at IPO is sought after as people believe it's value will increase and that increases its value.
Option 3 - A builder with a legacy of building and executing, chooses a location and sells and as he develops, the value and prices of flat after launch increase till finishing.
As per your video, Option 3 is artificial inflation and crony capitalism while there is nothing wrong with Option 1 and 2.
Slow caps ...
"....my husband, Varun and I". TRIFECTA OF REALITY
I gotta comment this time. Your actual content is priceless. That's the reason I subscribed. But the short funny clips that you add makes me want to either forward or skip the whole video altogether.
I don't know the reason you put these clips in between but it's my opinion to either remove them completely, or add something else.
Other than that, I absolutely love your research and the actual content.
Keep making more!
Video starts at 13:00
4:14 you can’t compare apples and oranges. When it came to skyscrapers numbers you compared it with Shanghai, NYC but when it came to floor space you are comparing to a prison.
- NYC, Paris, Hong Kong etc are notorious for tiny apartment, just like that Mumbai also has some
- most prisons are really outside, especially US that is 3rd largest country in the world in terms of area.
- outside of downtown no US city has a skyscrapers, it’s really flat in that terms
- lastly having so many floors will also be a drain on water and other resources. LA and California is already seeing huge water problems
So when you compare the same things for every parameter.
Yesterday saw a video FSI and today you guys made it man it's crazy how the production is. I can bet on this channel for next 10yr
Appreciate the effort your team put in to explain a complex topic... But still there are many more factors which have not been covered as to why one costs more than the other.. ex land A and B.. many more factors are still present within it.. just giving my take on the video.. 😃
Just realised, there should be TH-cam channel on property and real estate related cases, it's laws, its real time value in white and black, how builders do their buisness etc because there are countless videos on in depth stock market while i don't know if there are any on real-estate market
For Middle class indians having a "apna ghar" brings a lot of stability and psychological satisfaction..
For billionaires,they just can just build a house on any day they want!
For middle class,it isn't the case...
Prices are gonna increase, especially in big cities,more more youth are gonna migrate here as time passes.. there are hardly good jobs in Tier 2 cities..
So better buy a house,(if possible buy a plot ,even if you can't construct a house)..
Because plot is limited... Flats can build and delapidated,but plot always remains
Black money angle is so damn true. In my hometown, it is extremely common. A builder will outright tell you that you have to oay 60% black and 40% white. Imagine the plight of a salaried person that even though he can get the loan from the bank he still can't buy a house as arranging 60% black in a 1.5 cr property is next to impossible for that person
Next video . Why billionaires don't eat food to beat inflation 🙂. Kudos to Varun sir and their team 👍🏻
True 🤣
just a suggestion guys, try and keep the bgm on the lower side. the bgm is a blocker when I try to watch the video at 1.5x or higher. also, keep up the good work!
When I used to work with a Real Estate Valuer, people often asked me about the fair price of a flat in a certain locality after they had already purchased one. I found it strange that they were discussing prices after buying a flat. I tried to change the subject by speaking positively, but I didn't understand the point at that time, and I still don't understand today why people rush to buy flats. Builders and brokers always know when to sell and when not to sell, and people have confidence in their decisions before buying a flat, but they seem to get confused after making the purchase. Buying a flat is like getting married-it's not easy to determine immediately whether it's a good decision or not. Despite this, everyone hopes to find a good partner in their life.
Please make a video on Godrej properties ,cheating customers after cancellation of property they are not ready to give it back to customers.
I am residing on a tier 2 city here in chennai, The real estate has almost reached the saturation point here as our location is surrounded with indian airforce, So the fSI is very low compared to other locations Also the area is filled up with more than 70% of independent houses only 30% and growing for apartments, which luckily gives us some good aircirculation on terrace till date, Also less populated area, I lively seen a drama, An apartment constructed in a mainroad opposite to a bus stop initially quoted a price of 65lakh for 2 bhk apts, Then covid came price dropped to even 55 lakhs not even a single buyer came across, now the builder himself transferred it into a PG HOSTEL, Cause rent has not increased too much in the last decade and new commers in our location are happy to give a 10-12k rent rather paying 30k+ EMI for 20+ years for a name sake owner of an apartment in the same building
I really liked the video but 1 thing I didn't like was that you said Bombay instead of Mumbai plz respect the people of Maharashtra
love your content. never missed your videos. thank you for all those efforts you take.
Makes sense. I have always wondered if I buy a house for 5cr. How will I find people to resell the property , i mean there will be only few people to buy such properties at crazy rates. And there will be plenty of other options. Which makes my chances of sale go down.
Why will you resell it? Haven't you bought it to live ?
I think he/she taking for investing not for living
Many times buyers insists for cash compound, as it will reduce the stamp duty amount.
with our current roads and FSI, we are not even able to provide traffic free roads. imagine if there are 25x people going to the same building than what are going now. imagine the extent of traffic jams! increasing FSI wont help much but rather create these buildings more inaccessible.
😍😍🤩🤩😍😍
Always fascinated with the quality and topics of the content♥️🌸
This is utter BS. First, properties usually do have an out, just not an emergency friendly one. And properties do some way or the other trail inflation, so you can expect it to grow as an asset. Until you do that, you can accrue rent. Even if it is 2.5%, you can use it for your monthly expenses. If you are going to use it immediately, you aren't really concerned with exposure to market growth rates and inflation. This is the primary reason people invest in properties eyeing old age income when there is a lack of pension or to supplement it. Second, you always get the no black money option. Stamp duty on registration is tiered. At price A, you pay 7L stamp duty, at price B, it is 12L. So, people try to save it in this manner. No one is buying money entirely on black money. You are trying hard to make a mountain out of a mole hill. Third, rental units keep you poor. You always send off at least half of your income to your owner. Instead, if you spend the same amount on EMIs, you will end up with an asset. Even those living in houses with the same prices get to enjoy living in their own property versus concerned with making rent every month. Finally, the property prices are actually not that opaque. You only talk of first party sale from builder to first owner. But after the first sale, the reference point is usually divulged by the broker itself. No one wants to scare you off rather they earn only when you spend.
The problem with housing market in Mumbai is unique to it. Delhi, Bangalore and literally everywhere else has much more sane pricing. This video is a large skit and PR for Zerodha.
In Pune, even the outskirts where there is thin population, many project launch is happening as a villa and plot system and they are charging 1.5 to over 2 cr. Sometimes I feel that it’s only because many politicians are in this game that even lands which could be too cheap are expensive. And thing is that they hold these properties for long because they know that what they are charging and if buyers come even after 2-3 years as well, then also they are in profit.
Black money in property market has been there long before builders & in markets, where there are still no builders.
One of the major driving factors for this is insane Stamp duty & taxes, that makes transfers less lucrative.
Already explained by Mohak Mangal! But you guys did a great job in English!
Lovely explanation of FSI. Iv been in Mumbai for 10 years now. Aaj pata chala what exactly FSI is...
Explained in an detailed easy manner actual info starts at from CEO Conversation 👍👍