Deepak Shenoy came up with a very nice article on How Builders are not keeping there promises while delivering the Residential Properties . He shares his views on Why it does not make sense to buy Residential Properties currently at idiotic prices level currently . He also links to another article of this where he compares Renting Vs Buying a Flat . I am embedding the same video here which he has on this Excellent article . Have a look .
My take on the Subject
I am not a big Real Estate expert my self , but from Financial Planning point of view I have to say that Buying Home is an Important decision and we should look forward to it , but never at the cost of putting our self in a situation which can become disaster for our self . If you earn 50,000 per month , it does not mean you go next day and buy a Flat where you EMI is 40,000 . Most of the people do not concentrate on Long term and have a short term view . Buying House needs planning and consideration of various factors . You need to find Value in the property which you are buying , just dont see the value . A property worth 40 lacs may look Cheap , but its worth still be less than its price . Do you know the Formula to calculate the EMI on home loan ?
Given the uncertainty of Stock Markets in near term and no big improvement in Real – Estate sector , I am myself still not excited in Buying anything in real-estate (the main reason is that I dont have much money) .
Mohit Satyanand says
“I wouldn’t put money into real estate unless it fulfilled three conditions—
- It is a property I would be happy to live in.
- I could put down at least 25 per cent of the total cost;
- The EMI is less than half of my monthly savings.
With those conditions, it would be unlikely that I would exit the investment; not finding a tenant would’t upset me; and with the balance of my surplus income, I could continue to build a nest egg of other assets. Read full Article “
This view can look like a pessimistic views at first , but in the long run , these things pay off . Don’t take much risk that you are not alive next time to take another is the Funda you should Remember .
Please comment on what do you think about the Real – estate sector currently in your City . Also do share what is the most important thing one should look at before buying a Flat ?