{"id":5450,"date":"2012-04-19T01:49:41","date_gmt":"2012-04-18T20:19:41","guid":{"rendered":"http:\/\/www.bharatestates.com\/blog\/?p=5450"},"modified":"2020-06-15T04:50:21","modified_gmt":"2020-06-14T23:20:21","slug":"why-buy-a-home-that-you-cannot-afford","status":"publish","type":"post","link":"https:\/\/www.bharatestates.com\/blog\/why-buy-a-home-that-you-cannot-afford\/","title":{"rendered":"Why Buy a Home That You Cannot Afford"},"content":{"rendered":"

\"\"Real estate industry in India has touched new heights in past few years. In most of the metros the prices of real estate<\/a> have gone beyond affordability. These cities include Pune, Mumbai, Bangalore, Chennai, Delhi, etc. People here are struggling to buy homes as not only the real estate prices but the home loans are also getting very expensive. In such a scenario it is becoming difficult for a common man to dream for a sweet home. Though the salaries are in good size but the financial burden of owning home is much larger than the size of salary. Recently I read in the property newspaper that most of the new residential projects are providing world class infrastructure. If you buy a home in such a project then you should be prepared to bear the hefty maintenance cost of these classy amenities throughout your life. Actually the offer seems very attractive initially when you go to buy such homes but the reality is a bit bitter than what it seems. Owning a home is everyone\u2019s dream but buying a property<\/a> that is too expensive than what you can afford, is foolishness. There is a saying in Hindi: \u00a0\u201cJitni chadar hai utne hi per failao\u201d.\u00a0 In English we will say \u2018Stretch your legs till your sheet allow\u201d which means do not spend beyond your affordability.I came to know some couples who bought homes beyond their affordability and now struggling badly with very tight monthly budgets due to higher EMIs and restricted lifestyle. They now cannot afford a dinner at a restaurant forget holidays due to tight budget. These couples have put most of their emergency savings into down payment that is another wrong decision as you do not know what will happen tomorrow. You may require funds for any health emergencies then what will you do except rubbing your hands as that won\u2019t help either. It is riskier to invest all your money in illiquid asset. You pay rent and EMI both together as the home you booked is under construction thus making double financial burden on your shoulders. No one can enjoy life with an excessive loan for years. \u00a0What is the sense in buying a property which is over budget? What is the gain in having something that affects your life negatively? Later on to meet financial commitments you may need to sell the property which you bought cutting all your pleasure of life.In old times people would not buy anything which they could not afford as they found taking loan was not a good option. They would build their homes when they had enough money. It is a good practice actually. It is not bad to borrow from financial institutes or banks when you need money but you should not cross the limit. It is important to be capable enough of repaying the loan amount in time with interest. Analyse the situation first and if you think that you can manage the EMIs with your regular monthly expenses then only go ahead. Always remember that an emergency fund must be kept aside untouched for survival in crisis situations that are always uncertain and can never be predictable. Things that you can predict are in your control but unpredictable future cannot be controlled.Homes are expensive affairs and if due to social pressure or emotional reasons if you buy one then you just be careful while selecting the right property. It is better not to have a classy apartment in a posh locale instead of having one without peace of mind and happiness. Here are some important points one should consider:<\/p>\n