a person with an annual package of 10 Lacs can't afford an house in Mumbai looking at his responsibilities towards his dependents like Children, Wife, Parents and Social responsibilities like paying IT, Professional Tax, Buying Tax, Selling Tax, Walking Tax, Flying Tax, Eating Tax, Staying Tax, Surchage etc…………This is just an example of income with 10 Lacs but all people are not earning that much and most of the middle class people have an annual salary package in between 3-5 Lacs…now how we justify their case to own an house?
RE:Affordability
by Ram Krish on Jul 31, 2008 11:34 PM Permalink
I'm amazed at the common sense that people exhibit here. Then why do so many people go and get into Debt Slavery (what else do you call living under constant pressure and fear for 20 years trying to pay off your home loan? :). Most of the people buying homes in recent times are "owners" in name only. Banks own your homes - and as you will realise soon, your souls as well!!!
We are conditioned from birth that if you don't have a home ASAP, somehow its like walking without clothes on main street. Worse! Somehow you are not enough of a man!!!
This was okay in the old days of joint families (where support was always there when needed), steady lifetime employment and slow and steady price growth (where declines in prices were few and minor in nature).
Today we are globalised - another term for "buyer/consumer beware!". The Developer, Producer, Government, everyone is out to screw the consumer at every opportunity. So, while we did not realise it in the past few years (because salaries were rising faster than RE prices and interest rates), the Govt also got into the act by taxing everything and everyone literally to death (as Johnson has so colorfully put :).
But the backlash is now coming. People who were happily but barely paying astronomical EMI to smiling Bankers (seen advertisements?) will now see declining salaries, lost jobs, increased expenses and eventually lose life savings. Tragedy!!! And this will turn RE into a villain Industry soon (not entirely their fault).
