Houses in India are prohibitively expensive. One commentator estimated that the average flat in Mumbai (1.2 crores) is 34 times the average Mumbaikar's income.[1] To that you can add a 6% stamp duty and registration fee of Rs 30,000. Even if you take a cheaper city like Pune or Kolkata, the metrics do not change a great deal. Even a 50% discount to Mumbai will make a house 17 times annual income (or more since incomes tend to also decrease) and thus hardly affordable.
In other words, going even slightly wrong with your house purchase decision can cost you dearly. For those relying on home loans for funding, the risk is even more acute. What sorts of problems typically occur? Builders delay giving you possession, title disputes emerge, a municipal order halts construction, the permutations are endless.
So how do you build up your wealth so that you can actually afford a house in today's world? How do you determine if the house you're shown is a good deal? We give you some answers, in our next Money Hangout.
Investing to buy a house
Date: Friday, May 12, 2017
Time: 12:30 PM - 1:00 PM
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[1] Vivek Kaul, Explained: Why it would cost an average Mumbaikar 34 years' income to buy a home, Firstpost, Dec 21, 2014
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