Announcement

Collapse
No announcement yet.

Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

Collapse
X
Collapse

Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

Last updated: September 7 2015
52 | Posts
5065 | Views
  • Time
  • Show
Clear All
new posts

  • Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

    I have gained lots of knowledge about RE from this forum. I don’t post a lot but reads all posts .

    I am getting a deal in Tirupati Campus for ready possession 2 BR flat. As there is no Completion certificate, I have to pay 2.75% service tax on agreement value. I have to stretch my budget for this flat and EMI would be 40% of our (me n my husband's) take home salary + almost all savings will dry-up. the only factor pushing us for this deal is the availability of the same type of flat after 2 years. As we know rates will be stable till there are no signs of huge salary increments. We want to own a flat in Vishantwadi area as its closer from our workplaces + has some good schools nearby (my husband's company just 3 kms from here). We are ready to take resale (0-5 yrs old) flat. We have seen some resale flats in this area, problem is, there are very few societies in this area. Mostly are like standalone buildings. So most flats we don’t like and the flats which we like owners are quoting like anything, seems not interested in selling.
    So If I do not stretch my budget I think I will lose the flat of my choice, and if I stretch I know I have to compromise in my expenses.

    Can you help me in solving my dilemma?
  • #2

    #2

    Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

    Originally posted by Dipti View Post
    I have to stretch my budget for this flat and EMI would be 40% of our (me n my husband's) take home salary + almost all savings will dry-up
    In my opinion,lack of liquidity will be an issue. if i were u, i would avoid buying.
    what makes u buy? fear of missing buying in the future? parents forcing? just because someone else is buying?

    Comment

    • #3

      #3

      Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

      Originally posted by Dipti View Post
      I have gained lots of knowledge about RE from this forum. I don’t post a lot but reads all posts .

      I am getting a deal in Tirupati Campus for ready possession 2 BR flat. As there is no Completion certificate, I have to pay 2.75% service tax on agreement value. I have to stretch my budget for this flat and EMI would be 40% of our (me n my husband's) take home salary + almost all savings will dry-up. the only factor pushing us for this deal is the availability of the same type of flat after 2 years. As we know rates will be stable till there are no signs of huge salary increments. We want to own a flat in Vishantwadi area as its closer from our workplaces + has some good schools nearby (my husband's company just 3 kms from here). We are ready to take resale (0-5 yrs old) flat. We have seen some resale flats in this area, problem is, there are very few societies in this area. Mostly are like standalone buildings. So most flats we don’t like and the flats which we like owners are quoting like anything, seems not interested in selling.
      So If I do not stretch my budget I think I will lose the flat of my choice, and if I stretch I know I have to compromise in my expenses.

      Can you help me in solving my dilemma?
      I would rather live in a smaller flat then really suck my savings and give 40% of my combine take home income into a flat. We have to be prepared for any financial and personal disasters that my come in future..generally we have a very strong family support to bail us out but my problems are listed below:

      1. Inflation is increasing but salaries are not matching up
      2. We are buying houses with emotion and less logic
      3. Debt is long term debt maybe 20 years or more
      4. If 40% combine income goes in EMI then no backup for any contingency
      5. No chance of prepayment of loan since 40% is only EMI. Hence by 20 years we pay bank 60+ lakh for 30L loan..
      My advice would be to buy within budget.. The human mind learns to be happy with whatever it has.. however human mind cannot manufacture money for financial emergencies.. i would say by nice 1BHK and save more for future..

      Comment

      • #4

        #4

        Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

        You are buying too much more house than you can afford. DONT.
        Assuming both have equal salaries. What if one of you has to take a year long break? Then your EMI will be 70 - 80% of take home salary. What will you eat?
        Also, your savings are going down to zero. Building up to the same amount will take how many years? What safe buffer do you have during that time?

        Bring down your expectations, buy a house where EMI is 25 - 30% of your joint income and half savings are required.

        Comment

        • #5

          #5

          Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

          Hold

          Dipti,

          Here I can find a case of over-leverage. I don't know your age (nor would you disclose being a woman) but I consider you to be sub-30 (+/- 5%).

          In this case, most of the savings earned till date will be wiped out as you said. 40% of combined income, man errr lady, I hate when loan is combined. I am of firm opinion that lady should be kept out of loan EMIs irrespective of her earnings. Had you said 40% of your hubby's income, still it was good situation (savings would in any case have taken a hit though ). Just imagine if you want to take a break for 6 months, where will you land up? What I don't know is the eagerness to buy in such situation...are you earning for yourself or the builder & bank??

          I would rather suggest you stay on rent, increase the amount in savings, make some good investment with this & when you have enough financial buffer, jump in. Buying RE without savings is like skydiving without a parachute. So, rent, save, sit back & relax for now. Who knows 1 yr down the line, you may end up with better property with higher savings as well.
          If you are happy, you are successful.

          Comment

          • #6

            #6

            Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

            Originally posted by Dipti View Post
            I have gained lots of knowledge about RE from this forum. I don’t post a lot but reads all posts .

            I have to stretch my budget for this flat and EMI would be 40% of our (me n my husband's) take home salary + almost all savings will dry-up. the only factor pushing us for this deal is the availability of the same type of flat after 2 years. Can you help me in solving my dilemma?
            Are you sure you can continue work for 20 yrs ? atleast 15 ? If not then try to figure out how many yrs you can work ? EMI is 50% of your husband's salary it is OK. Consider your salary for prepayment. Small 2 BHK is ok. I will prefer smaller house and will use money for furnishing (offcourse after saving for next few yrs.) As you are looking for own use I am not suggesting for wait.

            Comment

            • #7

              #7

              Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

              Originally posted by mahesh pune View Post
              Are you sure you can continue work for 20 yrs ? atleast 15 ? If not then try to figure out how many yrs you can work ? EMI is 50% of your husband's salary it is OK. Consider your salary for prepayment. Small 2 BHK is ok. I will prefer smaller house and will use money for furnishing (offcourse after saving for next few yrs.) As you are looking for own use I am not suggesting for wait.
              Yes, but Mahesh, she won't be left with any savings..... Self use or not, you require savings right?
              If you are happy, you are successful.

              Comment

              • #8

                #8

                Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

                Originally posted by kaatesha View Post
                In my opinion,lack of liquidity will be an issue. if i were u, i would avoid buying.
                what makes u buy? fear of missing buying in the future? parents forcing? just because someone else is buying?
                I have fear of missing the property I liked. As I mentioned I want to buy my house in Visharntwadi or Tingare Nagar area. I don't want to go for even Dhanori which is 4-5 kms away from here. As this area has less societies very few resales are there. So there are less chances of getting a good falt later on. I have looked for resales in the same area and till now did not get a good flat.
                Last edited by Dipti; August 2 2010, 02:38 PM.

                Comment

                • #9

                  #9

                  Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

                  Originally posted by Dipti View Post
                  I have fear of missing the property I liked. As I mentioned I want to buy my house in Visharntwadi or Tingare Nagar area. I don't want to go for even Dhanori which is 4-5 kms away from here. As this area has less societies very few resales are there. So there are less chances of getting a good falt later on. I have looked for resales in the same area and till now did not get a good flat.
                  Infact, one of my friends had the same dilemma - he wanted a flat in MP city in one of the socities. I advised him - to stay on rent - do a company type of a lease - which is 1000-3000 rs per month more - but for 3 to 5 years. Register the contract and voila - after 3-5 years, you will realize what you have gained. (Maybe not fo this flat but another one if available or ask the owner - try to tempt the owner...)

                  If you craving about some place,(like I was craving about Kasturkunj in Bhosle nagar), you simply decide to rent and try to stay there for a couple of years and then decide.

                  Better have 50% of the paying capacity before you dive in. Beleieve me - there can never be a market where there are no sellers or NO options avaialble - Hum hi Hum hain to kya HUM hain, TUm hi Tum ho, to kya TUM hon?

                  Comment

                  • #10

                    #10

                    Re : Need Inputs to Solve My Dilemma - Tirupati Campus, Vishantwadi, Pune

                    What makes you so desperate for exactly this flat ? are you getting outstanding deal ? (eg. rate, furnished etc ?) Can't you put a counter offer and just walk away if it doesn't materialise ?

                    Comment

                    Have any questions or thoughts about this?
                    Working...
                    X