Home » Planning to buy an expensive home? Here are the things you should know
Subscribe for News letter
 
 
Fetching Data...
Site Map Why Finalaya
Financial Blog

Planning to buy an expensive home? Here are the things you should know

05 Oct 2016 |By: Team Finalaya

Home Buying Guide

For millions of Indians, owning a roof above their head continues to remain a distant dream. Yet, there is the upwardly mobile younger generation with the wherewithal to accomplish the dream with significantly lesser pain compared to the earlier generations.  But, within the real estate sector, this segment suffers from certain chronic illnesses that hamper healthy growth.

  • Ability of individuals to service large debt for 2 decades or more
  • Taking the plunger without factoring in all pros and cons
  • Poor personal finance planning
  • Yearning for flamboyant life style
  • High profile advertisements with half truths

Debt servicing

For the middle class and upper middle class Indian, household income today constitutes monthly salaries earned by 2 or more members of the family. Thus, in a household where both parents are still working and another son/daughter starts his/her own family under the same roof, there is a problem of plenty. The disposable income must be canalized into long term investment to save tax as well as prevent frivolous expenditure. At this stage, proportionate to the size of the disposable income, aspirations rise albeit, disproportionately.

For instance, for a family with a disposable income of Rs.1, 00,000.00 per month, it is sensible to enter a long term commitment of say Rs.60,000 per month towards debt servicing.  Everything is hunky dory when things are working with clockwork precision. But, life does not move on even keel over an extended period of time. One should remember that the Indian middle class is building on the strength of the IT sector and the digital world in general. Most other sectors have either stagnated or are lagging behind by miles. This large-scale dependence on a singular sector can potentially turn very sour, if India experiences a Lehman Bros or Fannie& Mae. Such an eventuality can be far more catastrophic than it had been for the West. A good driver should be more cautious while cruising at a thrilling speed.

Deep knowledge of the pros and cons before taking the plunge

Extensive knowledge of the pros and cons and factoring in the impossible scenario can still keep the home buyers unscathed. But how many actually do that exercise, is the million dollar question.

Personal finance planning

With cost of living, particularly in the large metros perpetually on the rise, personal finance planning takes the center stage. A diversified portfolio of investments, rather than ploughing everything into a single basket will ensure the financial health of individuals over the longer term.

Flamboyant life style

The electronic media works overtime egging the Indian middle class with a flamboyant lifestyle. But, it is for the individual to determine where he/she should pitch. Sadly, prudence takes a holiday and many walk into a debt trap after the initial euphoria.

The silver lining in the cloud

One way home buyers can keep themselves fully protected and enjoy their dream home is to explore every possible insurance option. The true value of insurance should be reckoned, rather than merely looking at it as a tax saver. This way, the middle class Indian homeowner will protect not just his own home, but also the Indian realty sector on its growth trajectory.

Recent Blogs

20170424

Will GST rollout raise inflation?

20170414

Why Pharma stocks are going through a rough patch?

20170407

Markets at all-time high - is correction on cards?

20170323

Is Indian economy resilient enough to sustain Donald Trump onslaught?

20170320

Demonetization & long-term economic outlook

20170315

What’s in store for Indian equities in FY2018?

20170309

How Reliance Jio is changing telecom landscape?

20170308

Will IPOs reward investors in 2017?

20170302

Five Hidden Benefits Of Having Health Insurance

20170109

BYE BYE 2016, WELCOME 2017

20161201

Planning to start an SME? These tips can help your SME on its growth trajectory

20161005

Planning to buy an expensive home? Here are the things you should know

20160928

Lending institutions may become wary of large loans

20160923

The dark and bright side of ULIPs

20160921

Are banks on their way to come out of NPA mess?

20160916

US Presidential elections and the Indian economy

20160913

Ache din continues to elude the aam aadmi

20160908

Is gold losing its sheen – demand slowing down in India and China?

20160906

Who needs Professional Liability Insurance & Why?

20160905

What if oil climbs back to the $80 or $100 a barrel?

20160822

Top 5 Financial Lies You Need to Stop Telling Yourself

20160810

GST – How does it affect different sectors?

20160407

How to leverage Workmen Compensation Insurance Policy for labor injuries and disputes?

20160224

Union Budget 2016 – What the street expects from the FM

20160129

Child Insurance, Protect what you have

20160128

What Advantages Are There in Investing in the Indian Commodity Market?

20160120

India Needs To Brace Itself For a Predicted Currency War

20160112

January & Sensex: What is the Saga?

20160107

The Importance of Home Insurance

20160107

Secure Your Wealth – An Investment Guide for Beginners

20160105

Making a Travel Insurance Claim: Questions to Ask Yourself

20151218

Why have bonus shares nearly died out in the Indian capital markets?

20151202

10 ways to diligently invest your money

20151126

Are you still in love with Fixed Deposits?

20151123

How systematic are your SIPs?

20151106

Would Shanghai trigger another global economic meltdown?

20151028

How the Chinese market turmoil has impacted the Indian Rupee

20151007

The Fed interest rate hike factor has dimmed again – but has it become laughable?

20150520

Trading vs. investing in Indian stock markets

20150428

Job loss insurance – Your cover for potential pink slips

20150413

How simmering global events can affect Indian capital markets in the coming days

20150406

Is Nifty eyeing 10,000 by the third quarter?

20150226

Union Budget 2015 - Sector Watch

20150224

Budget Day: Why markets need to remain open on Saturday?

20150217

Who gains the most from lower oil prices?

20150122

At $1200 an ounce, is gold a safe bet compared to Indian equities?

20141118

Wondering about the relevance of ULIPs? Probably it is time to rethink!

20141111

Is there a fed rate hike looming over the markets?

20141106

Are the markets heading for a deep correction?

20141105

49% FDI in Insurance Sector: Mixed reactions

20141104

How does the Modi government impact the real estate!

20141021

Sector Prediction for next 5 years: Real Estate

20141016

10 things about coal block allocation that you should know

20141015

In the context of stock markets, what do we mean by long-term?

20141010

Sensex at 27000; Nifty at 8000 - Does D-Street actually justify these big levels?

20141003

5 Safe Post Office Saving Schemes: Safe Zone For Investors

20141003

Afraid of credit card penalties? No more penalties now in 5 simple steps!

20140930

Getting married and worried about financial planning? Drop all worries now!

20140929

Not shopping online? Know what you are missing out!

20140926

5 schemes that are going to save your tax expenditures

20140924

Do you have idle money in your bank account? Opt for Auto FD

20140923

5 reasons that make Maruti cars the most suitable for Indian needs

20140917

The Ukraine Crisis – All that you need to know

20140915

5 major events that pulled Nifty above 8000 mark

20140911

Want to buy a refrigerator or TV? Manage your money by opening a Recurring Deposit account

20140905

10 Incidents That Prove Global Events Impact Indian Markets to a Great Extent

20140904

5 Intelligent Ways To Invest in Mutual Funds

20140903

5 reasons why you should invest in Gold

20140901

A few basic tips to invest wisely in stocks

20140827

SIP –Proxy to Equity Investing?

Page  of 
First Page Previous Page Next Page Last Page
Go to