I don't understand what the author is talking about here on advicing people to sell their house. There are people who take loans to buy house from the investment perspective. This option may be viable for them. But for people who have it as their only home, your advice to sell and settle them loan if they are not able to handle rising EMIs beyond the short-term calculations whatever you have said. If they sell their only home, where should they live??? In a rented house??? Even if they sell the house and settle the loan, if they happen to be in an expensive place like Bangalore, they have to cough up 10 months rent as advance for a rented house. where are they going to get that from??? another loan???
So when you are writing articles, please be specific on each possible scernaros and then advice. Do not generally assume that everyone would have bought houses taking loans only from the tax saving and/or investment prespective. For a lot of them, its a sense of having their own roof on their head...
RE:Sell the house??
by rakhi sawoneant on Apr 09, 2007 12:32 PM Permalink
the writer just suggested. it could be right for some individuals like in the example given, if one of them loses his/her job what do they do. sell the high cost house and shift to a lower cost house. its like cutting your credit card bill with a personal loan which is less expensive.
RE:[object MouseEvent]
by Smart Fool on Apr 09, 2007 12:46 PM Permalink
I understand that the author is trying to suggest that this may be good for some and not so for the others. All I said was that the author has to be explicit in giving suggestions that this may be good if... with specific examples...
RE:Sell the house??
by abhijit rao on Apr 09, 2007 12:26 PM Permalink
Hi, I agree ... The steep rise in interest rates is just ILLOGICAL. The government doesnt realise that neither the average life span / years to retirement can increase as illogically as that of the interest rates and nor does salary. I request rediff to engage an advocate who can answer and guide us to reach the Law. Regards, Abhijit
RE:Sell the house??
by ItsMe on Apr 09, 2007 12:19 PM Permalink
it is clear if you cannot pay the EMI, you have a choice, you sell the house or the bank sells the house. the author has given options, reduce your expenses and pay EMI or sell...
RE:Sell the house??
by Smart Fool on Apr 09, 2007 12:33 PM Permalink
If the bank hikes the interests which makes it impossible for the borrower to pay the EMIs, the bank has the right to sell the house. I am sure that bank will sell the house and clear their debts, but what about the family which lives in that house? will the bank take resposibility of them? No definitely not, the family will be left on the road to face their fate. Say if the house is worth 25 lakhs, the bank will sell the house to recover their debts and I think they will auction the house. Say the house is sold at 32 lakhs because of the appreciation for the land value on which the house is built. Will the bank give the extra 7 lakhs after recovering the debt to the borrower????
