You are 28 and if you have still NOT bought a house, I am sure you are in trouble! Most parents / uncles / elders….would have told you how you must buy a flat in Ulwe, Uran, Panvel, – assuming of course that you cannot afford in Marine Drive or even in Mira Road!

So what are the impediments to buying a house? Money of course.

However some of your own behavior is also an impediment to buying a house? Let see:

1. Over spending: if you spend Rs. 1000 a meal when you eat out, and you eat out say 9 times a month, that is Rs. 9000.

2. Renting a place far bigger and more expensive than what you need. No comments. Your call.

3. Paying brokerage every time you shift houses (when on rent) – this increases your rental costs by about 15%.

4. A car. Buying a Rs. 8L car does not seem to be too expensive, till you realize that the car runs on petrol / diesel and servicing it costs cash. God bless you, but a car costs about Rs. 14k a month…at least?

5. Not having adequate medical / car insurance – one medical emergency can set you back by a six digit figure. That hurts.

6. Living off the plastic card – and not paying on time.

7. Spending your future earnings! Today loans are available for everything – marriage, honeymoon, vacation, ….the more you borrow the more interest that you pay.

8. This of course must be the first point – EARNING much less than your potential – because of your geographical preferences…

there could be more….but this is not a bad list to start with.

See where you stand. ……

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  1. Thanks For The Input Subra .Thank God there are Readers of Subra who due to Subras Input Learn Concepts Like 1.Renting is Better than Owing 2. Display Asset vs Real Asset 3.Running cost makes all the diffrence in case of CARRRRR Not the Owing cost and Many like this .Thank You SUBRA !

  2. i fail on #2 (3bhk for 2adult+1kid), #4 (owning a gas-guzzler, but have been running it for 10+ yrs), #5 (decided to self-insure as no health insurance option was reliable enough), #8 (staying in tier-2 city to have a better quality of life)…

    but wait, i already bought a house – without loan, so should i really care???

  3. // 8. This of course must be the first point – EARNING much less than your potential – because of your geographical preferences //

    There is an old Tamil saying/adage : “Thirai Kadal Odi Thiraviyam Thedu” – Translated to “Cross the seas in search of treasure”.

  4. well i am not sure you cover all the points. I am a class 1 officer in govt and i am am honest also (I know these are contradictory but i am a researcher). I have been saving like mad for 3 years and i still dont have enough(including loans) for a 2bhk house on the outskirts of ahmedabad.

    i have no car or loans or indulgences except once yearly on diwali.

    I still cant afford to buy a house. so as you say property prices are unrealistic.

  5. I am glad you brought up the topic that best describes my situation. I am 28, and have not bought a house yet. I wont be buying a house in the foreseeable future either.

    However, I don’t own a car, don’t have any debt and save more than 70% of my paycheck regularly. So does my wife. Once we hit our target savings figure, only AFTER that we might choose a place to settle eventually and in such a case, buy a house for logistical reasons.

  6. I just did an analysis of my costs for car ownership. My car has run for 10 years & covered around 60000km by now.
    All figures are approx in INR:
    Purchase (in 2003) – 5,40,000 (cost, tax, insurance)
    Accessories (in 2003) – 10,000 (music system)
    Regular Repairs – 50,000 (5,000 per year)
    Major Repairs – 60,000 (mostly over last 5 years)
    Petrol – 4,80,000 (4,000 per month)
    Insurance – 1,50,000 (avg 15,000 per year)
    Parking – 4,800 (100 per month)
    Total: ~13lac
    So it comes up to around 21-22 rs/km – of course this ignores the time value of money. But certainly indicates that it is not cheap…

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