Real Estate

Investing for children: Buy house or opt for MFs?

Meera, a high flying corporate executive, was bent on using the money earned from her ESOPs to buy a second house as an investment which could be passed on to her children later. Her spouse Karan was against it as it would mean postponing their retirement plan. Harsh’s article in Business Standard on how Karan and Harsh managed to convince Meera to invest the money into financial assets instead. “You do not buy a cow today just because you may need milk years later. You make sure you have the money to buy the cow should you require it later” was one of the arguments that helped to convince Meera.

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Limit Section 54 benefit to curb money laundering

Why the price of your flat is so high? The demand from ” Investors” with black money keeps the flat prices high for genuine users. The exemption for long term capital gains under section 54 encourages such money laundering activities. Harsh’s article in Business standard today suggesting how the government can limit the exemption so as to prevent money laundering and at the same time not impact the genuine buyers who may be upgrading their flats. This tax loophole should be closed to bring down the cost of flats for genuine buyers. Your comments are most welcome

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