With the immense increase in development and population since the past few decades a lot of changes have taken place in the economy, one of them is the extravagant increase in the property prices, which was a given keeping in mind the growth of population, it was portraying the much milder version of the survival of the fittest or rather the survival of the ‘richest’.
Things are comparatively still easier for citizens of B grade and preceding cities under the CCA classification which has now been abolished, in comparison to the A grade cities like Mumbai, New Delhi, Bangalore etc. where a major section of their income goes in their accommodations be it for owning purpose of buying or renting. The prices of flats in some of the posh or even decent locations in Delhi or Mumbai are sky high. For a decent 2 BHK flat in Bandra you’ll have to be paying around 3 Lakhs per month as the EMI and if you’re renting the same flat you’ll have to paying around 50,000 per month.
Now the question arises whether buying should be the preferred option or renting. For a first generation metropolitan city citizen who doesn’t own any property in the city, owning seems like a nice idea merely for the sense of security. As believed in the stereotypical Indian context owning a house and then further a car are the milestones of every individual’s life, considering that idea living on rent even though being financially capable of owning a house seems absurd but so does spending 75 to 80% of your monthly income on EMI.
In that case, the best alternative is to buy a house at a comparatively distant place which is more affordable and continue to live at your rental abode near your workplace and other necessary amenities. So if hard times ever befall upon a person they’ll still have a place they own and can call a home. The difference of house for the purpose of investing and for the purpose of buying needs to be correctly understood by people. Most people don’t consider the idea of buying a house for investment purposes until they have one or two houses for living purposes but with correct rationality and mindset even the first house that a person buys can serve the purpose of investing.
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