Reasonably good apartments sell for 10-11k per square foot. For a mid size (2000 sq ft) apartment, this translates into a total buy price of approx. 2.5 crores!! The new constructions, due for possession 3-4 years out, are priced at 7-9k per sqft. This too translates into a total price of 2 cr. Assuming today's interest rates, this would imply an outgo of approx 2 lacs per month as EMI!!
The question that popped into my mind is - who is buying all these apartments that are getting launched at these prices? Are there really that many people who can pony up 2 lacs per month on their home loans?
Beats me!!
3 comments:
that is exactly the question I have been asking myself too - who are these people who are buying these apartments? maybe I have a very wrong notion of the world we live in :-)). Maybe there is a lot more money out there than is visible to me
Its not the folks like us who have monthly taxable paycheck...Imagine the number of middle rung govt. officials who minted money in CWG, 2G and what not...without the support right from the peon to the secys, the ministers cannot make much...the middle rung never get caught, they dont swiss bank tijoris and have little choice but to divert the ill gotten wealth to real estate!
In Mumbai, 2000 sqft is HUGE, not mid-size. But surprisingly, the rates of 10-11k is what you expect in Andheri East kinda areas. Thankfully, the builders realize the purchasing powers, and build 1000sqft houses.
Next up - there is a sizable number of people who make a large part of this payment from their own money!!!
Further up - it seems that some of our brethren make bonuses in the 1.5Cr range!!!
Still further up - people don't mind tying up their and their spouse's monthly income's 60-70% share into these loans!!!!
I realized it a few years back, that there is a lot of money that "some" are making, and I am not a part of that elite group. So, I decided to settle for less. Sometimes, I do wish that the 2012 prophecy comes true! :D
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