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Why did you buy your first home?

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Why did you buy your first home?

Last updated: May 22 2013
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  • Why did you buy your first home?

    Why did you buy your home?

    I find lot of opinion advocating that buying a house is waste of money. Renting is far far better idea. So many points are put across to drive home the saying "fools build/buy houses, wise men stay in them." There is a very popular calculator in NYtimes which always slaps you with Data on whether renting is good or buying. Most of the times its renting. So many data points are thrown at...mind bogling calculations happen...

    I also found a very famous member of this forum giving advice to a guy "park your money in FD and come back after few years...price will not increase much...you can select etc etc." I was doing the math...the project for which the member was seeking advice has increased prices by 10% almost in a span of 2 months. Not sure if post tax FD returns will help that guy buy his/her dream flat after 2 years. Buying capacity goes down significantly. Real estate has tons of black money invested and to make this industry transparent and bring prices to affordable levels...one decade will pass away easily...

    Anyway coming back to the point...whay did we buy out house...lets talk about our first home/flat that we bought....why?

    As far as I am concerned i bought my first home in Andheri area in bombay 6 years back. The decision was triggered by an event in Diwali...my landlord came to convey diwali wishes and while leaving took me aside and told that on lease expiry i need to vacate the flat...it was 3 month away. As a man with one little son of 6 months and a recovering wife i wanted to save them the humiliation in future of vacating everytime as the landlord wished...my father helped me with some cash and i got a nice 750 sq feet flat there...couldnt afford anything more than that.

    And my good luck (later it will turn bad luck) i joined Indian Revenue Service just after buying my flat...it bought me good luck. But its another story i quit after a few years...

    Anyway the point is why did we buy? lets share our stories.

    Wish everyone the very best.
  • #2

    #2

    Re : Why did you buy your first home?

    Originally posted by realdogma View Post
    Why did you buy your home?

    I find lot of opinion advocating that buying a house is waste of money. Renting is far far better idea. So many points are put across to drive home the saying "fools build/buy houses, wise men stay in them." There is a very popular calculator in NYtimes which always slaps you with Data on whether renting is good or buying. Most of the times its renting. So many data points are thrown at...mind bogling calculations happen...

    I also found a very famous member of this forum giving advice to a guy "park your money in FD and come back after few years...price will not increase much...you can select etc etc." I was doing the math...the project for which the member was seeking advice has increased prices by 10% almost in a span of 2 months. Not sure if post tax FD returns will help that guy buy his/her dream flat after 2 years. Buying capacity goes down significantly. Real estate has tons of black money invested and to make this industry transparent and bring prices to affordable levels...one decade will pass away easily...

    Anyway coming back to the point...whay did we buy out house...lets talk about our first home/flat that we bought....why?

    As far as I am concerned i bought my first home in Andheri area in bombay 6 years back. The decision was triggered by an event in Diwali...my landlord came to convey diwali wishes and while leaving took me aside and told that on lease expiry i need to vacate the flat...it was 3 month away. As a man with one little son of 6 months and a recovering wife i wanted to save them the humiliation in future of vacating everytime as the landlord wished...my father helped me with some cash and i got a nice 750 sq feet flat there...couldnt afford anything more than that.

    And my good luck (later it will turn bad luck) i joined Indian Revenue Service just after buying my flat...it bought me good luck. But its another story i quit after a few years...

    Anyway the point is why did we buy? lets share our stories.

    Wish everyone the very best.
    Nice topic initiated.
    And I agree that lot of people do debate that why are you thinking of buying a house. Just take a house at rent. It would save you from maintenance and many other hassle.
    I will take this point first.
    Whenever you live in a house, its no more a house for you. It becomes home. You stay in that home for most of the day(after office) with your family. AS time passes, you become very very connected to the house, you have lot of good(and bad) memories attached. If you are fortunate enough to be in a house for 2-3 years, you become so connected to it that it really hurts when the owner ask you to vacate it. It feels like you are going to miss something very important in your life.
    Aprt from emotions, you will have lot of legal problems too. Be it address related issues(like bank address, school address for kids), or be it your any other servies like servents etc, it really is a big problem shifting to an almost new area where youi dont know anyone and you have to start from scratch. Then off corse, you are going to miss all those people(neighbours) whom you become familiar.

    Moving to a new house is like starting your life from scratch.

    For me, I have bought my first house to live. Nobody can ever ask me to vacate it and I can cherish all those beautiful moments that I am going to spend with my family. Being a kind of person who loves each and every corner of the house, I would definitely prefer having my own house, so that i can decorate and do interiors as per my wish, and can stay there as long as I want.

    Comment

    • #3

      #3

      Re : Why did you buy your first home?

      coincidence!!!

      real dogma:
      You actually reminded me of the reason why i decided to buy a home. This was early this year, my landlord asked me if i could vacate his place...some relative of his needed to move in. I wasn't shocked for i had seen it coming. The rent, especially in the area where i was living, had gone up substantially. I decided enough of living with the proverbial sword of Damocles hanging over my head. I told my landword: Uncleji, you are not the first landlord who's asking me to vacate, but you surely are the last.

      A few months later i bought a 1 BHK in delhi, (where i currently live) and booked a flat here in Noida sector-143.

      Comment

      • #4

        #4

        Re : Why did you buy your first home?

        My primary reason was for investment. Though I didn't have funds to buy in lumpsum, so thought of building an asset through systematic investment in Real estate (the EMI way).
        Obviously all investments are planned in a manner that the worst case scenario can be that one might have to live at that place.

        The ROI is not that huge as its typically 3% of the cost of the flat but appreciation is good enough to stay invested. Its not liquid money though and finding a decent buyer meeting your expectations while selling is tough but for these kind of returns so far, its worth it.

        Comment

        • #5

          #5

          Re : Why did you buy your first home?

          me and my spouse are govt. servants and used to stay in Govt. Quarters in R.K. Puram. The flat was small in size and we used to face problem when guests came. Both of us used to lose HRA which was a considerable amount. We did not have any house of our own in this part of the country though we have ancestral house and also a residential plot in Hyderabad. On a fine day we come to a conclusion that instead of losing HRA, we can utilise it by way of a EMI on purchase of a flat. In fact, by purchase of a flat, we were saving some amount from HRA and also by way of tax rebates. The only problem was the distance from office. Moreover, our first son was about to start schooling and we had to take final call whether or not to purchase the flat (DPS, R.K. Puram was walking distance from our Govt. flat). After much thought, we purchased and quickly shifted to our new flat. We got our son admitted to a reasonably good school (Fr. Agnel, NOIDA) and are happy for our decision.

          Comment

          • #6

            #6

            Re : Why did you buy your first home?

            Interesting

            When I was unmarried....I used to stay in rented home....and used to have late night parties at home / bar. landlord was not ready to bear all this..I purchased 3 BHK at vikaspuri in 18 lacs in 2005 just for fun and partying. I did not have that kind of money but managed from some kameti, loan, help from friends, parents.

            Thank God, it is now more than 1 cr :-) and I am happy with my decission.

            Comment

            • #7

              #7

              Re : Why did you buy your first home?

              We were living in our ancestral home and some relatives were looking for their share from that ancestral property. So we bought a home in Rohini in 2004 and moved there. In last almost 8 years our investment has grown 4-5 times and given where the rentals are now a days in Delhi, it has turned out to be a very good move.

              Now I'm thinking of moving to Noida.

              Comment

              • #8

                #8

                Re : Why did you buy your first home?

                In my case i went to look out for a house on rent and ended up buying one with nothing, literally nothing in my pocket...
                The circumstances leading to it were similar as faced by almost every tenant.......mistrust and mishandling by the land lord......
                I bought my first property six years ago. I was staying at Noida on top floor and the first two floors were occupied by the land lord. We stayed there for a year and a half and still canot figure out the reason why the land lord got dissatisfied with us with just being husband and wife who remained out of the house all day and came back only to sleep at night..... anyways.... thats nothing of substance to be discussed cause i attribute my standing today to that push only....
                We went to look out for another house for rent at Vaishali in Sep 2005 and while looking for the same thought lets give it a look for flats for sale.... and eventually ended up buying one 2BHK builder flat of 800sft for 12.5 L.
                The purchase was completely a spontaneous one without even looking into details apart from the flat out layout and cost.... and didnt even had a clue of legalities one shoudl consider before buying a property..
                we didnt even knew what a front builder flat and back builder flat meant and how important it is to keep these factors in mind....
                The only factor prompting the decision was the prospect of having our own house and a preapproval letter of home loan from ICICI bank (which eventually upon actually applying for the same was turned down )

                Any how we survived the deal with the support of our parents ( who initially were shocked of our deeds without even consulting them) and well wishers but later on supported us on the same and we landed up in our home.......

                The stay there gave us a new lesson each day with the misdemanors of the builder but eventually we settled down and today that purchase and stay helped us land where we are today........

                Upon the birth of my son in Jan 2009 i decided to move out of the builder flat and buy a good aartment where we can have open air and sunlight and there we were booking our next apartment at express greens Vaishali which is about to be offered for possesion soon....

                I sold my first house at a premium, after 5 years of stay and utilised the premium in upgrading to a society flat.

                I still cherish my first purchase as it has been a stepping stone to where i am today.......

                Comment

                • #9

                  #9

                  Re : Why did you buy your first home?

                  In India any conversation between 2 people turns into a Duel to determine each others aukaat. The typical questions put to you are
                  1. Your name : tells people about your caste.
                  2. Father kya katre hain : shows your background.
                  3. Your profession
                  4. Rehte kahan ho : last 2 questions tell people your current position and future prospects.
                  In our highly materialistic society your address determines a key role in people gauging your aukaat. Most people buy a house to live and according to their needs and budget but a significant proportion do it to enhance their aukaat. Rightly or wrongly the house you live in and the car that you drive is thought of as an extension of your personality and people judge you by this.
                  My decision was driven by:
                  1. For a service class person like me I was taught that your house is a good store of wealth in the long term, therefore I went for the most expensive property that I could buy. My conservative family was shocked and excited in equal measure but were very supportive both emotionally and financially.
                  2. It was a desperate decision to improve my aukaat )

                  Comment

                  • #10

                    #10

                    Re : Why did you buy your first home?

                    Originally posted by Trickcyclist View Post
                    In India any conversation between 2 people turns into a Duel to determine each others aukaat. The typical questions put to you are
                    1. Your name : tells people about your caste.
                    2. Father kya katre hain : shows your background.
                    3. Your profession
                    4. Rehte kahan ho : last 2 questions tell people your current position and future prospects.
                    In our highly materialistic society your address determines a key role in people gauging your aukaat. Most people buy a house to live and according to their needs and budget but a significant proportion do it to enhance their aukaat. Rightly or wrongly the house you live in and the car that you drive is thought of as an extension of your personality and people judge you by this.
                    My decision was driven by:
                    1. For a service class person like me I was taught that your house is a good store of wealth in the long term, therefore I went for the most expensive property that I could buy. My conservative family was shocked and excited in equal measure but were very supportive both emotionally and financially.
                    2. It was a desperate decision to improve my aukaat )
                    Can't agree more with that.

                    Other factor is that a single guy looking to get married must have his own house as this is the first thing that the family of bride will look for. So the aukaat of a guy is determined by whether he is living in his own house or not. That is the ground reality of our society.

                    Comment

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