Those who wish to own a home are not immature; in many ways, it is a prudent move.
Your cost of living is fixed once you purchase a home; otherwise, rent keeps rising in line with market rates and demand.
Changing residences frequently is a difficult and tiresome process that involves a lot of moving, saying goodbye to friends and the children’s school, and—most importantly—not feeling at home until you’ve been there for a while.
Rent paid is money lost because it will never be recovered, but a house purchased is a lifetime asset.
Additionally, most Indians have the unspoken goal of owning a home because it is customary or intrinsic to our culture.
This is why many prioritize buying a property and wind up shelling out a sizable sum of money.
They are forced by this choice to live below their means, cutting back on most costs and making sacrifices in other areas of their lives.
In addition, the primary effects of this choice are felt in times of crisis and unforeseen events, such as job loss, medical issues, children’s further education, etc.
I will use a story to illustrate the traps or problems one faces whenever home is acquired on loans etc.
There is a middle-class 22-year-old named “Caleb” (obviously). His desire is to own a house that he can call his own.
At the age of 22, Rohan starts working for a reputable MNC. He is thrilled to be able to stand by himself now.
He is content with his job after a year and believes he can put down a down payment on a house to purchase.
He is astonished that, at the young age of 23, he has already purchased a place that he can name “home.”
He obtains an emi home loan for 20 years. (Emotionally).
Happy are his parents. He publishes a tasty Instagram post. His friends are a little bit envious. He extols his successes and refers to himself as successful.
After three years, he is now making a good living for the same business. Because he has always wanted a car of his own, he considers purchasing one on EMI. (Emotional)
He buys one using an EMI auto loan for five years.
He is content. He is prosperous. He travels internationally. He is dating someone (because why not).
His envious pals act in a similar manner. They borrow money to buy a house and a car. (Emotional)
But
Three years later, he begins to sense the effects of some workplace politics. He believes that this MNC’s workplace culture has degraded. Additionally, he is not receiving any promotions.
He continues to work for the same organization despite being bound by a debt rope. He experiences a lot before deciding to switch companies.
He has been seeking work for three months. He is using his savings to pay off his emi debt. He is becoming depressed because he was not hired by a prominent MNC.
Due to his high expectations, he doesn’t want to work at a tiny business. He simply wants a top-tier MNC.
Nine months pass. His savings are nearly depleted. Finally, he must let someone else buy his house and automobile. He’s finally free of the debt cycle. He’s back where he started.
Buying is an emotional decision, not a logical decision.
The response to the query is the passage above. We purchase something as a result of an emotional connection.
When it comes to making purchases, most people behave like “Caleb”
We spend four thousand dollars on a cool pair of headphones only to have a cool status symbol.
We purchase iPhones.
In life, we often purchase items that we don’t actually require.
(BTW, I don’t mean to offend any Caleb.)
The main source of this unhappiness is not our people; rather, it is a discrepancy between property values and average income levels caused by the existence of a corrupt black economy.
People have been investing all of their illicit funds in real estate for years, which has driven up property values dramatically.
Additionally, the increase in salaries has not kept pace with inflation or the cost of development.
Due to this, a simple apartment that ought to cost 20–25 lacs instead costs 50–60 lacs, while a house that ought to cost less than a crore instead costs 3–4 crores.
Linking properties to Aadhar, finding illegally owned properties, seizing them, and taking other decisive actions can all contribute to significant decreases in property rates.
Additionally, we must avoid devoting more than 25 to 30 percent of our income to EMIs as mature persons.
Here’s my opinion in case anyone is skeptical of this response. I’m displaying a photo of a person who engages in behaviors that practically everyone does.
As soon as he gets cash flow, he makes purchases. He begins with “little items” like a brand-name earbud or an iPhone, which are actually quite large.
(I questioned a friend of mine, “Why are you doing that?”) His response was that he was content with life and desired to treat himself with his entire paycheck.)
Smaller scale situations are still acceptable.
Then it gets worse and he begins to purchase items that are much beyond the scope of his goddamn available funds. My argument is that purchasing a home will help you to ensure the future of your family.
Why rely on a house loan of any kind to achieve your goals?
You’re going to detest this, but you lack the guts to address the cash flow. You don’t want to exert additional effort. You want a simple solution. The person described above was emotional, not an idoit.
There is a proverb that states, “The player who can control their anxieties and make rational decisions wins the game.”
You dig?
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