Khota Paisa

(Is It) A Reason To Buy Home!

Posted in General by khotapaisa on October 5, 2009

Consider this conversation.
A – “The XYZ Builder has dropped the rate for Exotic Apartments by 450/- per sq-ft. Did you know that?”
B – “Really! I didn’t know. Le’st go and see the flat then. Tell the boss that we will be back in an hour.”
A & B go to ‘see’ the flat at the Exotic Apartments and are back in an hour as promised to boss. B is very happy as he booked a flat over there by writing a cheque of 50,000/- to the builder. Congratulatons fly around with the never-missing emphasis that it really was a great deal. 
A scene like this was common just a year or so ago, albeit without the price cut. But I saw this scene few days ago. Believe me, even in this (near) recessionary period there are buyers ready to buy house like this. Now, there are two types of buying -Need-based & Trigger-based. The need-based buying serves the buyer and involves a lot of deliberation & price haggling. While the trigger-based buying serves the seller and is mostly detrimental to the buyer.
When do you buy something? Well, you buy when two basic criterea are met. One you need it and two you find the value for money. In our daily lives, we often haggle with shopkeepers, vegetable vendors and others over few rupess. But when it comes to buying a big ticket item like house, we often find ourselves writing cheques just because the house price came down(from a more non-sensical peak to a less non-sensical peak). But just because price has fallen doesn’t mean that it is value for money.
Credit is now becoming so common that one is expected to own a house by the time he/she is 30 or so. Afterall, how come you are the only one who doesn’t have a house at the age of 30? Note that this it is the same generation that has to surrender the house to the bank because after layoff it is not possible to pay an EMI of 30,000/-. Everything is fast…you buy a house after 2 years in job…you are laid off after 3 more years…you surrender the house to bank after layoff (and no job even after 3 months)…back to square one. Remember when your father first bought his house? Well, we certainly are in a different time today, but we surely need to be as much (if not more) careful about our money as our fathers.

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One Response

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  1. Perfect Stranger said, on October 26, 2009 at 12:32 am

    Simple but truth. Bang! I cound’t agree with you more. I was under so much of peer pressure few years back for buying a property. So much so that I had paid Rs 2 lakh advance to a builder and my loan was finally approved after a moth of running. But I was never comfortable with the idea of loan (could hear the golmaal song always). It was time to sign on the paper to disburse the amount to builder. But (lucky me) I gave a thought to the idea again and I made a decision. I cancelled the loan and told the builder that the bank didn’t approve it. There was no other bank ready to give loan for that property. I got the advance money back. I was so happy and am still happy about the decision. I can pay the rent and there will always be place to let. I will have the peace of mind. Thank God!


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