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I often wonder about the secrets of money making and I am sure that you do the same very often.  Why few people always seem to do better while lot of people struggle to find a way to make money? In the last few years, I have met many successful corporate, businessmen and investors across industry and learned that making money is a difficult puzzle to solve for them as well. There are multiple aspects of this puzzle and they are supposed to be put together in different ways in different situations.  But one interesting thing what I found was that they all had one thing in common i.e.  they followed the principle “Use Others Money” even if this meant shedding extra bucks as an interest.


If you read or watch news, then you must be aware that Malyas, Ambanis, Tatas, Birla and many others are using the bank’s money to build their own fortune. Even banks do not use their own money to make money. After demonetization, 12,000 crores rupees have been put into the banks and this money is our hard-earned money. It is simple that banks are using our money to build themselves. In the process, they make huge profits and share a minute portion with us.


One of my friends who is an investment banker used to tell me “If someone gives you any product or service and doesn’t ask for money immediately, you must opt it even if the person charges some extra amount”. To pay money at a deferred date is always easy and all successful people are aware of this. In present start-up culture, all big companies are running after other’s money because they know that they will be able to make huge money as compared to the money they must pay back. They are using people’s money to own big offices, luxurious cars and comfortable houses. Yes, companies like Apple, FlipKart, etc. are doing this. The Gujarati and Marwari business communities are nowhere behind when it comes to follow this practice. Even the federal government is following the same. In a nutshell, using “Other’s Money” is both a trick and a trump card.


It is surprising why people belonging to the middle-class are reluctant to use other’s money. In real estate people generally prefer to invest their savings rather opting for a loan. The people’s perspective of using their savings might look profitable in the short term, but it won’t be profitable in the long run.

Now let us explore why “Other’s Money is better than My Money” while investing in real estate.


Earning money these days isn’t that difficult as it was 10 years ago. Some time back, I met two of my school friends Dilip and Mohan at Olympeo Riverside, Neral. They had an interesting story.

5 years ago, both were accountants in a small family owned business and could earn merely 10,000 rupees per month at the age of 21. Living in Mumbai isn’t easy probably because it’s highly expensive. Dilip, unable to make savings got often frustrated, but Mohan never cared much.

Dilip, once discussed his concern with his wise old father. His father advised him that if he is unable to save anything on his own., he should look for other people’s money to save. You must be wondering; how will this practice yield positive returns?


After researching, Dilip decided to invest in an apartment by taking a home loan (Other’s Money). He found a 1RK in Panvel, which was then an upcoming area in the outskirts of Mumbai at mere 5 lakh rupees. He started paying an EMI of around 5,000 rupees every month. Initially, he found it difficult because 50% of monthly income went into EMI, but after two years, it got easier. By the age of 25, his monthly salary increased to 25,000 per month, but his EMI was still Rs 5,000 per month. Now he had to shed only 20% of his monthly income in EMI. Meanwhile, his property prices had increased steadily to around 13 lakhs. At a less age, he had a disposable income of Rs 20,000 per month and an asset of worth Rupees 13 lakhs. The catch was that he didn’t pay the entire amount rather he has just paid 60 EMIs of Rs 5000 each. While Mohan on the other hand kept on enjoying his entire salary and he just had a disposable income of 25,000 without any asset.


Dilip took a smart decision and he tells everyone that EMI was not his expenditure rather forced him to make savings. And this allowed him to build an asset, which values more than he could have afforded with his own money. He is planning to sell his flats after 2 years (only 1.2 extra investments, still total less than 5 Lakh of initial flat value) and book a bigger flat.


Olympeo property advisors have their calculator, which will give you a detailed idea of your investment. Call on 07303 800 900 today, if you think of buying a flat.

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