An asset puts money in your pocket month after month. Does your personal home do that? Stop calling it an asset.
— Robert T. Kiyosaki (@theRealKiyosaki) May 12, 2014
Category: Realty
On my travels,I met a property developer from Karnal,Haryana.
He gave me some priceless advice in Punjabi on Real Estate:
“Barah saal mein roni property bhi soni ho jaandi hai”
i.e “In 12 years, even a horrible property will become lovely”
Warren Buffett penned a recent piece where he talked about his real estate investments.
One was an investment in farmland in 1986 where the normalized return from the farmland he calculated to be 10%
The other was an investment in New York Realty where the unleveraged rental yield was around 10%
Both these investments worked out very well for him
Whats interesting to me was that both the investments gave him double digit yields when he invested.
Realty investors know how difficult this is to achieve.
In Mumbai,residential yields are now around 2% and commercial yields are around 6%.
The only other person I know who is getting double digit yields on the current value of her property is my Mother-In-Law.
Maybe,I should blog less and listen to her more !