Quote:
Originally Posted by amit_arya
Going by the post. it only make sense to rent and not own. if that is the case the whole world should simply rent.. now body should own .. and if no body owns then there is no owner .. then from whom should we take the house on rent...
... dude like there should be balance between debt and equity the same is true for your house.. you need not buy a house for the max loan a financial institute is ready to loan but a house that u need and you can afford.
why to buy a maruti 800 when u want a ferrari and why to buy a ferrari when ur need of the hour is maruti 800 ...
|
Just see the facts:-
1.) Most of the Investors purchased just before RE boom. It was only due to investor/speculators & IT which fueled RE to current levels at first place.
2.) I don't think any investor must have purchased RE in 2008. Had that been the case, avg prices would have been atleast INR 4000-4500/sq ft in Pune. Correction in RE prices wouldn't have taken place at first place.
3.) At current levels, the returns on rental/lease are just about 3.6%/annum. This is far lower than simple bank FD of atleast 8%. With proper investments, you can without any risk still earn 12-14%/annum even today.
4.) The simple calculation for calculating economically viable property price is:-
Total Price of Property = 200 (max) * x; where x = monthly rent.
Hence, if you are paying INR 10,000/month as rent, the max. value of that property should not be more than INR 20L. Hence, the statement that you can rent larger & better location flat for less than the EMIs.
5.) At current prices, what would you have after end of your home loan tenure? Just a flat ? I would prefer to stay on rent & stay free of unnecessary financial liabilities at current RE & economic scenario.
6.) I would like to conclude by saying that
I am not asking anyone to stay on rent for life. I just want to say that Rent Today & Purchase Tomorrow at affordable/logical price.
Happy house hunting!
Btw, have a look at the following news:-
Unbelievable, but true. A Pune-based builder offers apartments at half the existing rate;.....
]http://www.mid-day.com/news/2009/jun/240609-Krome-builders-Mumbai-builders-Vishrantwadi-Koregaon-Park.htm[/url]