Second Homes – Grave Investments

Discussion in 'Money Matters' started by Ninasnatter, Oct 23, 2012.

  1. Ninasnatter

    Ninasnatter New IL'ite

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    Emerging Market Economies are on their way to experiencing the problem of plenty. Double digit double incomes have created a market for homes and second homes. Second homes are smaller villas or cottages or row houses tucked away in scenic surroundings which serve as a week-end getaway. Europeans and the Americans, as usual started this trend which they now realize doesn't serve as a sound investment anymore and are fast offloading their dead stock in the emerging markets.
    Indians; being hoarders out of habit are jumping on the bandwagon and quickly lapping up the offers little realizing that although their capital stock is increasing – the cost of maintaining these second homes and their dead stocks piling up are eventually going to prove to be a dead investment at great costs. Cost in money terms not only to them individually but a far greater harm to our ecological balance too. All the hill stations and scenic spots are fast being eroded to build second homes causing destruction of not only the flora and fauna but polluting the environment by the non-stop construction activities. Precious resources are being diverted to these second homes which if used in the intended manner are likely to remain vacant for the better part of the year. On the one hand, majority of the population involved in building these second homes don’t have a roof over their heads and settle in slums. Here the crafty politicians step in to get sure shot votes and promise a roof over their heads. SRA is the brainchild of these craft politicians. On the other hand, precious land is being exhausted in minding sand, granite and other building materials, plots earmarked for second homes and laborers being promised homes in the SRA involving further construction activities. Doesn’t that appear like a vicious circle?
    Economic progress measured in terms of output hence fails to be an indicator of progress. Real progress cannot be at the cost of nature. Economic activity coupled with its ability to recycle, regenerate and sustain within the same resources is what real progress is about.
    This line of thinking makes one realize that holiday packages offered by various travel and tour agencies are a better option than second homes. In the first place your investment is nil and you don’t carry the burden of maintaining your second home. It’s better to invest your money elsewhere and use those earnings to enjoy a fun filled tension free holiday. Besides, if money is invested in proper ventures, it’s bound to grow in value and contribute to economic progress in real terms. What we need is proper well-maintained infrastructure and not second homes built on the hill stations. If this trend continues soon there will be neither proper infrastructure nor any beautiful scenic spots left.
    :drowning
     
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