Housing…

If low income housing is not easy to implement, maybe it’s partly because you can’t find the land to build them on, within city limits. Methinks the low income guy prefers staying in a slum within the city rather than in a 2 room house 25 miles away.

Property prices in Blr are up because there is demand. That’s all fine, but at least some of that demand has to do with people who have too much disposable income or are earning well enough to afford the EMIs, and who look at housing primarily as an investment.

People who buy property as a speculative investment should be put in jail. There must be some kind of law that mandates that you stay in the house you buy/build. And if you don’t, there’s got to be a tax of some sort. If you own two houses, there’s got to be a tax of some sort too.

As an aside, one design innovation I would like to see is: toilet flushes with control settings, i.e. you should be able to control the quantity of water being flushed down the loo. Three settings should do: low, medium, high 🙂

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Posted on August 25, 2005, in Uncategorized. Bookmark the permalink. 11 Comments.

  1. As an aside, one design innovation I would like to see is: toilet flushes with control settings, i.e. you should be able to control the quantity of water being flushed down the loo.
    There are models that support this. One push button does a complete flush i.e. empty the tank, while the other flushes as long as you hold the button down.

  2. 1) In Mumbai (Dharavai-Bandra link to be specific), flats were allocated under the Rajiv Gandhi Yojana or something like that to slum dwellers. People who got these houses sold them and shifted back to slums.
    2) There is an income tax on houses other than the one you stay in.
    3) As an aside – switch to tissues…hahaha 😉

    -D

  3. 1) Why exactly did they sell them? Could be various reasons. And who did they sell them to? Builders or their cronies, methinks. Which only kind of re-inforces what I am saying – that people who buy property for speculative. investment should be dealt with strongly. And two things here – that’s what a “reasonable slum dweller” will do given that he got it at lower rates compared to the market rate in the area. So, you have to structure agreements accordingly, because the real estate market itself is imperfect. If you are trying to say that low income housing shouldn’t be done, ‘cos the slum dwellers will sell anyway, sorry, I don’t buy that.

    2) Ok. You are right. I forgot about that. Nevertheless, I think that’s hardly a sufficient deterrent given the degree of capital appreciation in real estate.

    3) eh? Is that what you do? 😉

    Btw, did you get the mail? Not interested, I presume?

    • 1) I am not saying that low-income housing should not be done. Its just that it needs to be executed to serve the right kind of people. Mumbai has a lot of problem of immigrant Bangladeshis. These guys just slum all over the place and then before election, they get voters ID cards – courtesy vote hungry politicians. Then they become eligible for ration and all those perks and get free housing. I don’t know why they sell the houses but I presume that they don’t have jobs and selling the houses will help them sustain that much longer. I don’t think builders buy these houses becoz these building are still there.
      2) I don’t think the current rally is speculative like the earlier one. It does make sense given the areas that are growing. Its still better off in India – the number of people rigging the market are less. In other countries, speculators are large funds (Real Estate Investment Trusts) who rig prices.
      3) That’s what I had to do in Istanbul 😦

      I got your mail and replied too. My office administrator does not allow me to download that.

      Nice discussion this… should continue on msn sometime.

      • You replied to my mail?

        Weird, I didn’t receive it. Are you talking about the startup or about google-talk?

        Oh, I am not saying the current rally in blr is speculative. Maybe, a little. But I agree with you that a large part of it is actual demand. But I have been seeing a few cases where people are buying property with the express intent of investment/selling it later. They have the money, they can afford it. And I think that pushes up prices for people who could otherwise have got it at more affordable rates, even if they can afford the higher rates. In a sense, it’s like a transfer of consumer surplus to an area that doesn’t deserve it. Nobody benefits, but the builder. And that gets my goat. I think consumer surplus should be directed to better things.

        Oh, Bangladeshi immigration is a big issue. No doubts on that. I had made a long post on that on my other blog (that’s no longer active) long ago.
        http://arunsdossier.blogspot.com/2004/08/bangladeshi-immigrants.html

        I wouldn’t want to mix it with low income housing though.

        You had to clean your loo with tissue in Istanbul??? Holy crap!! 🙂 God forbid, I ever have to face that situation!!!!

      • I am talking about google. I didn’t get any mail on start-up. The word sounds interesting…would love to know what its about. Please resend.

        Hmm…but that’s just the demand part of it. I am saying that there is a supply. Its not like few people chasing less goods is driving prices up. I think there are goods also – here its land obviously. It’s when supply is exhausted and still prices go up that would cause a bubble. Am I making any sense? Never mind – it’s way past my thinking time 😉

        And yes – in the whole of Europe there is no water in loos. It’s apparently too cold for water. So there is ONLY tissue….you got to manage the way you want 🙂

        Pl send the mail.
        Bye for now. Going home.

      • Mail sent.

        This housing argument is going in a different direction. I was not talking about bubbles or anything. I mean, those are consequences, yes. Just looking at how can you make it unattractive for people to buy a second house as an investment. Waise, the reason prices are going up is because supply ain’t keeping pace with demand. Otherwise, it shouldn’t go up. And there is only so much attractive land. Anyway, way too early for this. 🙂

        Loos without water?? Wait, wait…I think you are talking about the butt, I am talking about the flush.

        But, never mind. Enough of this crap. 🙂

      • Arre…I haven’t got your mail ya. Where are you sending it? Pl send on my gmail…my office ID gets full sometimes.

      • I got your reply though 🙂 I have been sending to your gmail id only. Possibly it’s getting queued up in my Exchange Server. Guess you should receive it soon enough.

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