The past two decades have brought transformative changes to the real estate market in Kashmir, especially in land values. Prices have surged from 5 to 10 lacs to astonishing figures of 1.5 to 2.5 Crores today. This dramatic increase—15 to 25 times appreciation over 20 years—highlights the lucrative potential of real estate investment in the region, showcasing a Compound Annual Growth Rate (CAGR) of 15 to 20%.
However, the landscape contrasts sharply when it comes to constructing homes. Two decades ago, building a house would cost about 40 lacs. In today’s market, that same construction has risen to around 1.20 Crores—an increase of only 2.5 – 3 times. This striking disparity emphasizes a crucial understanding: while land tends to appreciate significantly, constructed properties do not exhibit the same return on investment.
Despite these insights, many individuals find themselves ensnared by a painful reality: considerable resources are often spent on cars—depreciable assets that yield minimal returns. This misallocation can adversely affect our financial well-being and bear heavy emotional implications, especially concerning the future of our children.
To remedy this disparity, we must embrace a transformative change in our financial priorities. Rather than obsessively acquiring possessions, we should focus on investing in our most important asset—education. By directing our finances toward skill development, we not only safeguard our financial futures but also empower the next generation with essential tools for success.
While the dream of building a beautiful, comfortable home is a natural aspiration, it is vital to align such dreams with our actual financial circumstances. We must avoid incurring debt that could become a burdensome obligation. Acquiring assets through loans—particularly when interest rates eclipse earnings—can establish a detrimental cycle of financial hardship.
Effective financial management necessitates education and sound advice from trusted professionals. It is critical to consult advisors who prioritize clients’ best interests over pure profit, guiding us toward informed decisions that promote financial autonomy.
Let us resolve to provide our children with the wisdom of prudent financial practices and a legacy grounded in education, rather than material accumulation. By investing in their professional development, we equip them to navigate the complexities of the evolving financial landscape.
This intentional shift can reshape lives and create opportunities for success that extend beyond conventional educational frameworks. Together, we can forge a future rich in knowledge, skills, and possibilities for generations to come.
- Disclaimer: This article is for information only and doesn’t offer investment advice. It’s not an endorsement or an offer to buy or sell any financial products. If you decide to act on the information here, you do so at your own risk.
The post first appeared on Kashmir Observer
