A house is one of the most vital investments. Some of them argue as it is one of the biggest liability and others claim as it is an asset. According to me, it is just a place to live your life. I don’t consider it as a liability or an asset. Since it is both a liability and as well as an asset. In India, we generally get the house from our forefathers. The house is generally passed on from one generation to the other and we really don’t think much about buying a house to live in. If at all we do then it is only the lower middle class people who are in the pursuit of becoming upper middle class or rich buy a house now to live in. If you belong to the upper middle class or rich then I am sure you would be having a house by now. That is because your father or his father would have made sure about your needs.
In western countries, the teens have to be independent from their parents and it is not the same in our motherland, glad it is like this. I now know the pain with which people purchase the house (more on this on later posts). When the teens become adults and they are vested with the responsibility of buying a house, it becomes a big thing. There are many headaches and worries when it comes to buying a house. Just a few of them that I consider, the distance of your house from work, the locality, the neighbors, the facilities that you get in and around the house, the easy accessibility to various other needs such as hospitals, schools and others. The list never ends and it keeps growing. After thinking about all this and then making a purchase is not possible for a common man. For a guy like me, I have to compromise on many things and the first thing that I could think of is, “the money part”, it should fit the pocket.
I feel at times, it is way too early for me to even think about buying a home. The amount that is involved is quite huge for me, the responsibility that I am going to take just scares me, but it is a nice move to have a roof that you own. I had contemplated about living in a rented house the rest of my life and I have made some calculations and found that it does not make sense and it is better to own one. I will share the calculations with you all sometime later. These days the so called real estate correction has happened and the prices are down according to the experts and media, but according to me it is just a myth and nothing else. The real estate was never cheap and it will never be. Some ten years ago, my dad could afford a double bedroom apartment and today I can. The difference between our salaries is around 3 times and I think that the prices have gone up more than 10 times, if you can figure that out then it clearly means what I said. The prices of the houses were almost at the same level even before 10 years. If the price of a good enough house was 10 lakh ten years ago then the salary of the person was around 10 thousand and now, the price of a house is around 30 lakh and the salary of the person is around 30 thousand. If you notice the value of house is almost the same. Even now, the people take loans just like the olden days, the same 20 years.
House is not a very big liability since you will be staying in it. If you were living in a rented house, then you would be paying the rent to the landlord and instead of it you are paying the EMI to bank, agreed that it is little hefty when compared to the rent but at the end of say 10 years, the house becomes yours and that is the best part. It won’t be an investment because you are living in it and you just can’t sell it and realize the value of it. If you are scared of buying a house or getting into long term financial commitment then think again before doing anything.