A friend of mine and her husband recently bought a new house. In Aberdeen no less.
Needless to say, she is ecstatic and shared this important news with me. It made me happy too.
I am also planning to buy a house, and have started planning the dream as well. However, i feel, that for somebody like me, an IT Business Development professional, with just over a couple of years of experience, this is not going to be a cakewalk.
The main reason? I think i am earning way behind the times. I can choose to take a loan, at the exorbitant rates prevailing today, and keep paying approximately INR 25, 000 upwards per month for the next 25 or so years. Crazy innit?
People tell me that atleast i am building an asset for myself.
Agreed.
But paying every month for the next so many years kinda scares the shit out of me.
Why are the real estate rates in India spiralling out of control? Is there so much earning that supply is less? Yes, maybe. But not exactly.
I have only one group of people to blame for this spiral. No, not the IT guys.
The brokers, pimps, investors and the rest of the lot.
Buy flats by the dozens, sit on them to create an impression of demand, jack up the prices, and whoa!! You have a 100% profit on your cost!! Not bad. And look!!! No regulatory body to check on you!! Laugh all the way to the bank you jack ass!!
And the brokers. They are the scumbags, for who the word "scumbag" was invented. Make money for what? For showing me the place? I was asked a 2 month rent as brokerage equaling to 21000 bucks!!! I asked the bastard to fuck off and he came straight to 12000. I hope he rots in hell!
In India, we pay for the land, the construction, the municipality, and yeah, parking as well!! I am told that paying for parking is not legal. And i also know of people who have paid up to a lac of rupees for a parking spot. One. Only one frigging parking spot. Add that to the cost of a new car.
Now, this friend who bought this new house in Aberdeen tells me that there, one doesn't have to pay for the land. Well not so much anyways. The cost of the land is less compared to that of the construction.
So what can i do about this? Sit and crib? Save up and keep saving so that i don't have to take a loan?
Or maybe i can wait for the great real estate crash, and then be an opportunist, or a predator.
Yups. May be thats what i will do.
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4 comments:
Its indeed tough with the current home loan rates. Wish those 2005 year was back again, where fixed interest rates was at around 8%
Bro , i think it s all gonna be at an equilibrium five years from now. My theory.... boom in IT etc, more jobs, Apparently More money and thus greater affordability. But i think with time , not too long from now, this boom s gonna be over and the reality will surface in the form of reasonable rents and real estate prices .Then really talented people like you(and i ) can build a nyara bangla. Say what ?
Sigh. when i first arrived in Pune 2 yrs back, i was informed on arrival that there was no accommodation in the hospital for me and i'd have to find my own quarters.. As usual, the brokers came into the picture. They took proper advantage of my urgent need and eventually i paid 30k for a 2bhk room i didn't even stay in for 3 months. He never paid the refund as promised earlier.. All the more fool me, i guess.
These brokers are like the leeches of modern society. God knows what makes them think that they can just fleece the public. And this problem is exacerbated in Pune. Elsewhere, both the lender and tenant shell out money to rent a place. 50-50
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