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Old June 28 2010, 04:00 PM   #21
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current rates are quite high and cost of ownership is high when compared to rent out.

The correction might come, to what extent is difficult to predict. also Pune property price has a cushion from the investors from mumbai , so again fall in the prices in pune would be relatively lower.

but one shall not miss the bus this time when the price correct. i think 20-30 percent from the current price may be good idea (considering the economic condition doesnt deteriorates much)
 
Old June 28 2010, 04:25 PM   #22
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Default My biggest reason

For me, the biggest factor was the quality of life. Considering I didn't exactly kill myself while buying a house, I can now atleast dream of how I would want to live (rather than how I have to live) once I am back at Pune.

Somethings which I am not able to do when on rent:
  1. Buy my kind of furniture (simply not possible to move with the stuff w/o damaging it)
  2. Buy my kind of car (Right now, stuck with a mid-sizer for past 4 yrs and can't upgrade for want of better parking) - and yeah, before the advise of changing rental house comes pouring in, I have to do with current house for other more important reasons
It is not about living life king size but living life the way for which one is slogging day in/day out.
 
Old June 28 2010, 04:28 PM   #23
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Quote:
Originally Posted by pcpune View Post
But, you should always enter into a tenant-owner kind of Registered agreement AND not a Leave & License basis.
A tenant owner kind of agreement is a death warrant for landlord. I always make leave and license agreements for my tenants. Also, I send the draft 1 week before. No changes are permitted. If they do not like the clauses, they can look elsewhere.

If agreement is tenant owner, the tenant's children, grandchildren have right to stay in the property. To evict the tenant, prepare for a decade long court battle.
 
Old June 28 2010, 04:30 PM   #24
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rsatitkar: Great topic. all: Could we please stop branding any buyer/someone positive towards real estate as builder guy?

I have been staying in rent since last 3 years, and here is my take on this:

1. Furniture thing: True to some extent. I bought an unfurnished flat, so I am slowly buying quality furniture that I would like to put in my final permanent home. If I feel some furniture is not matching, I can always sell it out.

2. Customization: Frankly never been a fan of tearing down walls/inserting nails etc. In fact, I like the fact that even a small thing like tap repair etc are taken care of by the landlord. I had to install a water filter, I duely requested the landlord for the same and he immediately gave permission. Think of this as if you were the landlord. Of course you would allow the tenants to enjoy themselves unless they are causing damage to your property.

3. I am staying in a banglow, something which I just couldn't do at this stage of career. I stayed in a flat for all my life, and after experiencing banglow life, I am now fully inclined towards a banglow only. You see, for an original Mumbaikar, banglow is nothing but a fantasy came true!

I have few suggestions for fellow renters:

Give equal weightage to landlord & his family too: Many times we only focus on the flat, but if the landlord is your neighbour as happens in banglows, then a bad landlord or someone in his family can be of real nuisance. My previous land lord's wife was such a headache, each day she used to do something for harrassing the tenants! It was like living in a chawl where some local chap tries to pick up fight each day! Now the present landlord is luckily very nice person, and he and his family are equally good reasons that we love staying in his house.

For brokers, just do the leg work! Search online sites & read papers. Best thing will be to take out some time on a sunday afternoon, and just visit the location you want to stay in. Just keep asking whether anyone has a flat to rent. My present flat was suggested by a Kirana shop, with zero brokerage!

I agree that for families with children & seniors, renting and possibility of having to shift is going to be HUGE pain, but unfortunately for them, there is no one in government to ensure they get a house in good price. In short, these people are probably in bad condition now, and that too mostly because of greed of single persons / DINK couples! Hey, now don't come after me, even we are just a couple with no young or old ones staying with us.
 
Old June 28 2010, 04:43 PM   #25
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Originally Posted by abeerbagul View Post
A tenant owner kind of agreement is a death warrant for landlord. I always make leave and license agreements for my tenants. Also, I send the draft 1 week before. No changes are permitted. If they do not like the clauses, they can look elsewhere.

If agreement is tenant owner, the tenant's children, grandchildren have right to stay in the property. To evict the tenant, prepare for a decade long court battle.
Abeer,

Well, I certainly believe it is the duty of the land owner to rent only the "right" guys. The goons can even not leave the property without any agreement as well.

But, Leave and License agreements have no value in terms of tenancy and the renter is disposed off his all tenancy rights..

Leave and License has been brought out bcos companies wanted to sub-lease the property to some-one else, and he himself cannot be tenant.

Anyways, ALL RENTERS - PLEASE MAKE SURE THE AGREEMENT IS TO YOUR OWN FAVOR - OTHERWISE LOTS OF DIFFERENT OPTIONS AVAILABLE.

The rents have been on a downward spiral and will be on a downward spiral bcos of over-supply - good for renters - many options available.
 
Old June 28 2010, 04:59 PM   #26
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I have been following this forum for past 2-3 months & one thing I have realized & experienced, there are two categories of members here:

1. Members who say do not buy houses now, stay on rent, this bubble will burst & prices will fall. These are considered to be genuine smart buyers

2. Members who say that prices will not fall much & staying on rent is not possible for long & those who are thinking of buying a house now or have done it recently are considered as builders' person

So everybody is assuming as per his/her convenience. Great!

I wonder which category I fall in. I wan't to buy a flat asap but at the same time cannot find one in a preferred location in my budget
 
Old June 28 2010, 05:19 PM   #27
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Quote:
Originally Posted by abeerbagul View Post
All the CONs are absolutely true.

I am staying as a tenant, and all these issues are a pain:
1. Landlord can always give one months notice
2. Society gives substandard treatment (not too much, but it is felt)
3. Cannot renovate - would love to have hot/cold water in kitchen, but cannot change the plumbing
4. Family and friends keep calling me "kanjoos"

Positives:
One and only one: A lot of money saved while waiting for correction in real estate market.

I would never say "rent for life". But at least rent in a bubble, save the difference in rent and EMI, do not blow it on vacations / lifestyle, and CASH the CRASH when it happens
Quite logical & rational thinking.
 
Old June 28 2010, 05:56 PM   #28
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Quote:
Originally Posted by pcpune View Post
Abeer,

Well, I certainly believe it is the duty of the land owner to rent only the "right" guys. The goons can even not leave the property without any agreement as well.

But, Leave and License agreements have no value in terms of tenancy and the renter is disposed off his all tenancy rights..
Quote:
Originally Posted by abeerbagul View Post
A tenant owner kind of agreement is a death warrant for landlord. I always make leave and license agreements for my tenants. Also, I send the draft 1 week before. No changes are permitted. If they do not like the clauses, they can look elsewhere.

If agreement is tenant owner, the tenant's children, grandchildren have right to stay in the property. To evict the tenant, prepare for a decade long court battle.
Dear pcpune, abeer
I agree with Abeer on this Leave & License Agreement option.
Would like to share an experience:
We had a good tenant named 'kulkarni' in one of our property on Tenant-Owner Agreement for many years. One fine day he handed over his place to the well known Satish Misal and left. From that day it took us more than 10 years of legal battle to get back possession of our property.
Moral of the story is, its independant as to whom we give the place, never give it on tenancy right or else be prepared to face the consequences.
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Old June 28 2010, 06:42 PM   #29
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Jitu_Sir,

I somewhat agree, but most agents/owners use L&L as a tool to exploit the renters/IT guys of brokerage and commissions - framing wrong agreements.

How good it would have been to have a common rent agreement format across India?
 
Old June 29 2010, 12:12 AM   #30
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Icon15 Buy without over-leveraging

This is indeed a nice topic.
I would like to put the cons of renting as just one:-

INSECURITY :- And this is of emotional as well as physical. Physical coz you don't know which type of neighborhood you may land later depending upon the vacancies of flat.

I am of the firm opinion that housing is a basic need of every animal & humans. Hence, not to buy throughout the life is illogial. What I would like to convey is the fact that buy if you can atleast maintain the same lifestyle if not better if you own a house. Ideally, the price of house which you should buy should be 3 times your annual income, I can make it 3.5 times max to max. So, one is eligible to buy a house of INR 35L if the take home income is INR 10L/annum. Not to forget that you should have atleast 10% the price of house in savings. If this aspect is met & you are not bothered about VFM, go ahead & buy.

As said before, house is a part of life not entire life. Owning a house is a beautiful experience, but it should not come at the cost of other better things in life. We are not against buying a house, we are against over-leveraging for buying a house .

Hope this makes the air clear.

* PS:- If we all would have wanted to stay on rent, why would we have made site visits at first place??
Quote:
Originally Posted by veeemkay View Post
I don’t want to generalize here but i think women in general don’t like moving houses. I believe because they spend a lot of time decorating and keeping their house clean. (Maybe it is emotional.. Maybe I don’t know). But Women to me are complex to understand... wait i am digressing from the topic.
VK
Man, you are married yet you find women complex to understand? Then imagine what our situation would be.
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