What It Means To Own A House

Real estate is the most valuable asset in the world. And buying a house is perhaps the biggest financial decision for most people. It is also a highly emotional one. Hence, when it comes to such decisions, you cannot rely totally on the numbers. Nothing will drive my point home better than some real instances. I know a young couple who live in Bandra West, Mumbai. From a real estate point of view, this is an expensive location, and they spend a fair amount of money on rent. What’s interesting is that they own a house in Navi Mumbai, which they have leased. The rent they earn (from the Navi Mumbai house) is way, way below the rent that they pay (for the Bandra house). If we look at pure financial considerations, the clichéd “rent is money down the drain” argument comes into play. Logically, they should be living in their own house and investing all the money that...