Sunday, 16 September 2012

Mumbai Real Estate

The average rate of property in Mumbai suburbs is 10 Million rupees. So how the financial numbers work to get one such property.
1. Required Annual income = 2 million rupees ( 20,00,000/-) i.e monthly Rs 1,65,000/-
2. Loan provided by Bank 75% of property value = 7.5 million rupees (75,00,000/-)
3. You need to shell out from savings (if you possess) = 2.5 million rupees (25,00,000/-)
3. Monthly EMI = Rs 83,000/- for 20 yrs.
4. Amount paid over 20 yrs to bank = 19.92 million rupees (1,99,20,000/-)

So to buy property worth 10 million one pays 19.92 million rupees. Does this make financial sense plus consider all uneven things that can happen in due course of 20 yrs??

Instead of buying property if one stays in rented house, the benefits...??

1. Rs 2.5 million of initial investment if invested in secured government bonds for 20 years gives Rs 11 million in return.
2. Rental expense with 10% hike every year is Rs 17.18 million for same property, still Rs 2.74 million less than loan amount to be repaid for 20 yrs.If this 2.74 million rupees amount is invested in secured government bonds over 20 yrs it gives you Rs 11.15 million.
3. Maintenance cost of property over 20 years Rs 1.5 million
4. Property tax over 20 yrs Rs 0.6 million (with 2012 rate)
5. Total saving generated from renting property is Rs 24.27 million over 20 yrs
6. The most important thing renting gives flexibility to change cities/localities as per requirement of job/schools for children and many more.

Buying property at least in Mumbai has no rational. And how many people have annual income of 20,00,000/- in Mumbai...????

Saturday, 15 September 2012

Investing in India

Investing in India...what you should know......

1. Huge Population & natural demand
2. Large untapped market
3. Highest percentage of young population
4. Saving rate of 30% to 40%
5. People buy premium stuff to impress others
6. Population in rural areas possess money but lack avenues to spend
7. Rampant corruption acorss all levels
8. All cities/towns/villages are full of filth & dirt
9. Infrastructure is in pathetic condition
10. Politicians, local goons & unions demand security money from every business
11. Decision making in painstakingly slow
12. Patience is the biggest character all companies need to posses while operating
13. Cheating is very common
14. Opening new business/factory/outlet/warehouse is full of hurdles
15. Even after so many good & bad things country is still growing rapidly

Sunday, 22 July 2012

INS Sahyadri Commisioned

INS Sahyadri last in series of three stealth warships was commisioned today at Mumbai. Indian Navy will get seven more indigenous stealth frigate warships to give the Indian Navy a stealthy power punch and will be built in Indian Yards.The next generation warships to made under approximately Rs 50,000 crore Project-17A will have more improved stealth features to further reduce radar signatures and under water radiated noise. They will also have slick appearance and multifunction radar to further bring down detection chances.The weapon system will be flush-deck mounted that will allow vertical launch of missiles from under the deck, said a navy official involved in designing the ships.


Few basic laws of investment:

1. No investment is free of risk.

2. Insurance in not investment, its just a tool to cover risk.

3. If you want to play safe invest in government bonds.

4. The asset which rises rapidly falls rapidly.

5. Don't invest with herd mentality.

6. Real value is in gold/silver or any physical asset. Money is just printed paper.

7. Invest in only those tools which you understand thoroughly

8. Sell off when every person without basic knowledge of that field starts speaking on investing in it.

Sunday, 15 July 2012

5 Lakh crore gamble

Banks have disbursed over Rs 5 lakh crore credit to the farmers during last fiscal as against the target of Rs 4.75 lakh crore. Still the GDP numbers for agri sector growth remains meagre at 2.7%. Same amount of investment/credit in any other sector would propel growth of around 8%-10%.
                Reason for such low growth..??? The money is getting diverted by end users to non farm sectors. Many farmers have bought private vehicles, consumer electronics goods & things of leisure using this credit. Many know they do have to return the loans they have received from banks considering previous loan waivers from government. with small lands sizes , poor irrigation , low market rates many farmers have opted for same.
               Already Dr. Subba Rao has pressed the panic button as NPA have risen by 50% for loans given to agriculture sector. The GOI seems ready to take another huge write off in 2014 (election year).

The List Goes Long

Pages wont be enough if we start putting pictures of underachievers or rightly said in-capable leaders who have been given top positions to run the countries governance. The ruling party over 60 years have appointed such people who lack leadership, management, governance skills that has taken significant toll on growth of the country. The appointment of such people continues religiously against will of general public.

World Drought Scene

Major part of the world is under going through worst droughts not seen in decades. 53% of united states is facing severe drought conditions. The problem is getting aggravated as this drought is in major farming states. The drought has affected crops like wheat, soybean, corn plus live stocks.
           Same condition is in major part of Africa, India, Spain and many more countries. Drought is creating perfect condition for massive price rise across all food commodities. The price rise is going to affect global food prices and already prices of wheat,soybean, corn, sugar are on rise. More critical is going to secure regular supplies of potable water for huge population.
            Global warming has started to show its effects.!!

Friday, 29 June 2012

Maharashtra Mantralaya & Fire

Questions to be asked:

1. Who all will be punished for not having proper fire fighting equipment, government puts owners of private building in jail immediately for such incidences?

2. How did the fire spread so quickly?

3. Why did fire department fudge the call records as per new agencies?

4. Is it related to growing demand for new mantralaya building from ruling parties from some years?

5. How many files/papers related to all in famous scams by politicians were burnt?

6. Why some leading politicians are speaking of rebuidling mantralaya by non private companies immediately instead of looking after the families of those dead?

7. Why people smell consipracy behind mantralaya fire?

INS Vikramaditya

INS Vikramaditya start sea trial in Russian after painful long delays...

Epic Take Over

The news of Hong kong stock exchange buying 135 year old London Metal Exchange signifies a tetonic shift in center of power & money. The HK stock exchange has given an offer of 1.4 billion pounds for all 12.9 million shares.
        LME from where global commodity prices are being decided will be controlled by stake holders from China. This is significant shift as demand for commodity dwindles in Europe & America , Asian countries become drivers of economy. The take over still needs share holders approval which will be fearcily apposed as westerners wont leave control over such power house which can make or break commodity markets.

Saturday, 9 June 2012

Policing the Police

Mumbai Police blatantly breaking rules. They expect general public to follow all the rules but they never follow themselves. Police driving without seat belts, helmets, breaking signal, driving from wrong side are most common things anybody can view on Mumbai roads.
          Will Mumbai commissioner charge them and penalise if provided with photo proofs..?????

Friday, 8 June 2012


The Global markets are not going to crash significantly even though Greece exists abruptly. Their is huge liquidity in market which will ensure that all markets (share/commodity) do not crash. Just the money will flow from one asset to other. The liquidity situation is 100 times better than that of 2008. The fed is printing dollars for 4 years with no break pushing trillions of cheap money in markets and same has been replicated by most of the European countries plus China.
               Till all this money is not sucked back by all governments out of market people should not panic and sell off. Every dip should be used to buy more. US elections are due this October and Obama will take no chance and advise Fed to pump as much as money in markets they can ( QE3). Stay invested till elections season ends. 

Saturday, 19 May 2012

Howitzer After 27 Years

Finally after a long wait for 27 years Indian Army got Howitzer Guns for its artillery. The induction is still 2-3 years away but at least deal is done. The ultra light weight M777 (145 nos) will be bought from USA under foreign direct military sales so no chance of any scam or middle man.
               M777 are being specially procured for two mountain divisions as each gun just weighs 4208 Kg and can be easily airlifted by helicopters.
              Still their remains huge deficiency in IA fire power as requirement of Howitzer is completely not fulfilled.

Food Grain Prices

Even after bumper food grain production for continuous second year , the prices do not budge to come down in India. The rational of demand supply gap is being questioned.
             I can say food grain prices are not going to come down for this year also. The GOI is purchasing all food grains at much higher prices (MSP) than other traders can offer in market. The traders are getting less supply from farms and GOI is not releasing stocks in open market . GOI is holding record amount of food grains sufficient for two and half years to feed entire Indian population. GOI should be blamed for hoarding & price rise and not the rational of demand supply gap.
           Reason for buying at high MSP...?? vote bank politics from most of the political parties. They fail to remember that giving high prices to select grain growing farmers is not going to give them winning votes as India is moving from agriculture economy to service & industry based economy. The action is impacting much larger population & hearting people in BPL category.

Sunday, 13 May 2012

Time to ground the AI & IA

Aviation Industry is one which has drained most of the money across globe bankrupting almost all state sponsored airlines at least once in its lifetime. Its always better to leave air line industry in hands of expert in that field instead of government operating them for national pride.
          Same stands for Air India & India Airlines. Both combinely have costed 80,000 crores to India tax payers plus GOI is committing more 30,000 crores for its revival in future which also is going go down the drain. The GOI should stop acting as service company and do what it best suited to do, run the country & governance. With current strike by pilots GOI has the right reason to sell AI & IA to private companies after opening FDA in domestic air line industry. Also will put an end to massive corruption being done by ministry to bottom employee in both companies.
          The private air lines are matured enough to take control of Indian aviation.

Wednesday, 9 May 2012

Shift in power centre

            The recent visit by Hillary Clinton to Kolkata to resolve the issue over FDA in retail has shifted the power centre in India. Even USA knows now in whose hand actual power lies. So should Mamta Banerjee top the list of most powerful global women of 2012 ?

Tuesday, 1 May 2012

Food Grains Rot

In a country where millions go hungry every day and where food prices are breaking the back of the common man, a record amount of food grains are rotting in government godowns. GOI is holding (Hoarding) food stock sufficient for two years of requirement. Banning the exports has resulted in loss to Indian farmers and increased prices in international market pinchng the other non agircultural countries.

A lot of damage is already done and by the time the state government and the central government decide on a plan of action, all stocks may be lost.  10,688 lakh tonnes of food grains were found damaged at FCI gowdowns which could have fed entire population of few african countries facing famine.

Some people say rotten food grain is cheapest raw material to produce alcohol.


Budapest through my pictures...!!!!!!

New Delhi Airport Scam

Recently many international airlines were forced to shift operation from mumbai airport to delhi airport.Many did like Austrian, Swiss, lufthansa & more. Then came the 346% hike in airport charges/usage fees for operators & customers of Delhi airport. I smell a scam.

Oil Prices

The Crude oil prices are fixed at NY/London/Singapore who do not produce a drop of Oil. The Oil producing nations have no control either on price or output. Ban in trading of crude oil on commodity market will bring their prices down by 50% from current level.

In India all states should follow the Goa pattern. Reduce taxes on Petrol/Diesel and balance tax inflows by increasing taxes on Alcohol / Cigarettes / Gutkas.

Sunday, 29 April 2012

When Sachin Lost the game of cricket

Yes the day Sachin decalared he is joining Rajya Sabha on congress ticket, that is the day Sachin lost game of cricket which he never had. The most influntial figure in India who was apolitical has joined the most corrupt party of India. The role model for millions of Indians by joining hands with congress has shown corruption is nothing wrong. The man who always played fair game, can be so unfair while making this decision. How could Sachin do this.?? Was is trapped..??

Ten years back Sachin did not attend any ceremonies or parties, just concentrated on Game. But since start of IPL he is attending all major parties in town with his new Industrial & Bollywood friends.Sachin fell in properly laid trap. It was being planned since long. He has been distanced from cricketing faternity (did not attend Rahul Dravid's farewell ceremony).

In between it was in newspapers "Congress looking for strong Marathi face to stop multiple poll debacles in Mumbai" . Who could be most popular & promising marathi face than Sachin in India? His new circle of Industrial & Bollywood friends lead him to doors of 10 Janpath.

I just feel that let God give Sachin the power to follow the right Dharma. Amen.


IPL is ZERO % Cricket and 100% Entertainment..!!!

Saturday, 28 April 2012

Politics & Corruption

Politics & Corruption are inseparable. All political parties are corrupt only they defer on views. Like two Indian national parties one is nationalist while other has nothing to do with nation but both are equally corrupt.

Naval LCA makes maiden flight

The indigenously built Light Combat Aircraft Tejas LCA Navy NP1 today made its maiden flight in Bangalore. With this India has crossed a major milestone in Design, Development, Manufacturing and Testing of a “four plus” generation Carrier Borne Fly-by-Wire STOBAR aircraft.LCA Navy is the second STOBAR (Ski Take Off But Arrested Recovery) Carrier Borne aircraft in the world, after the Russian deck based aircraft. However, this will be the only Carrier borne Fighter aircraft in the Light category.
           Congrulations to HAL, ADA, ADE, NAL & DRDO on this huge scuess.

Indian Missile Shield Ready - DRDO Chief

India's two-layered anti-missile shield is ready for induction, and deployment for defence of the national capital, DRDO chief V.K. Saraswat has said. The system, comprises an exo-atmospheric interceptor PAD and endo-atmospheric interceptor AAD and hunt down any incoming missile.
       Seems now we don't need to worry about long range missiles of our friendly neighbours who often threaten nuclear war.





Gwalior a small city is filled with amazing things to see. This is a must visit place & things to see are:
1. Mansingh Palace
2. Gwalior Fort
3. Saas Bahu Temple
4. Sun  Temple
5. Chatri temple
6. Buddha sculptures
7. Tansens Tomb
8. Rani Laxmi Bai Tomb
9. Gwalior Zoo
10. Baddi Market
11 And many more