To buy or not to buy: dilemma faced by real estate consumers

HYDERABAD: The demography of India is tilting favourably towards youth and with each passing year scores of young professionals are entering the job market. With hefty pay packages and ‘stars’ in their eyes, a sizeable chunk of these youngsters are indeed aiming for better positions and are poised for brighter careers.

But while the changing economy and the associated ‘perks’ are changing the lifestyles of the people; one quintessential Indian trait still lingers on. The desire to own a house. The increase in the well paid workforce is indeed providing a perennial demand to the real estate sector.

Name it anything, a place to settle in, a way of reducing expenditure or a simple investment opportunity, there are many incentives for owning a house. But while most people have a strong desire to own their abode, they, nevertheless, are deterred by many daunting obstacles.

And the first one of the lot is to take the very decision of buying a house. “We would like to buy a house but the very fact that we have to take a decision right way scares us. There are few variables that we have to factor in before taking this plunge,” Satish Kumar and Veena Rani, a couple working in IT industry, says. The dilemma that this couple face is that there is a possibility for them to move out of the country on a three-year assignment. “We have few choices here. We can buy a house now and give it on rent or come back to the country with better savings and buy a better house in a gated community,” Satish mulls. “And then there is the question of whether we will settle in this city. If we are not settling in this city, we will be struck with an investment that we cannot look after,” he adds.

While taking the plunge is a hard step for consumers, builders too advise that the decision of buying a house should be taken after careful deliberations. “If a person can afford to buy a home within his salary he should not have a problem in buying a home. Investing in real estate indeed makes for a sound economic judgement. But if a person has to take a loan to buy a house, he has to be careful before taking the plunge,” Janardhan Reddy, a builder observes. To help a person in taking the decision, Reddy gives a checklist. “A person has to decide as to whether he is buying a house or flat to settle in it or is he taking it as an investment. If he is taking it for settling down, then the distance from work place, connectivity and civic amenities available in the area play a major role in taking the decision. Typically such people would look for a house in the core areas of the city or those near their work place,” he says. But if a person is looking at buying the house only for investment purpose, he can go a little easy on these parameters. This, he explains, is because over a period of time any area in a city is bound to develop. “The real estate rates are bound to go up and by the time a person decides to sell his property, the area would have developed sufficiently and would invariably fetch him a good bargain,” he said.

The article was published in Property Plus supplement of The Hindu on May 12, 2012.

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