Weve all heard the three most important rules of real estate:
That certainly is proving to be true for a number of renters in south Mumbai, India, albeit somewhat serendipitously. Pooja Thakur, writing for Bloomberg Businessweek, describes this amazing development that is radically changing some renters personal balance sheets (“Mumbais Boom Turns Renters Into Millionaires” 7/9/127/15/12, pp. 41-42):
Mea Kadwani, 78, has lived in the same apartment in the Mukund Mansion in Mumbai since he was a toddler. Thanks to rent control laws, he paid less than $20 a month for decades, and $23 a month recently, for a 2,600-square-foot space in the upscale Nepean Sea Road neighborhood, where rents typically top $2,000 a month. (p. 41)
Because of the need for developers to repurpose various parcels for the demands of a rapidly growing city, these low-dollar renters are being offered some pretty hefty incentives to relocate. Thakur explains:
Thousands of rent-controlled tenants of Indias fast-growing financial hub are becoming millionaires as developers tear down crumbling colonial mansions to build luxury towers for the rich. (p. 41)
Mr. Kadwani didnt strike too bad of a deal. He ended up walking away with $2.5 million. He shouldnt have too much difficulty reestablishing an adequate new abode.
I would like to know if he will think about location this time as much as he did the first time. Then again, maybe hed better not think too hard.
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