Two decades back people will be dreaming of buying their own house and with their lifetime earnings they will either buy a land outside the city and build a beautiful house in it or buy a small single bedroom house(Individual house) in cities as flat/apartment culture was not there at that time.
Later after the rapid growth in construction field happened there were many new multistorey buildings coming up and people were rushing for these apartments and it created a huge demand in property sector.
Initially a sector which was for their own consumption became a place to invest and earn profit.
It became a donkey race now , people are fighting for lands , apartments , houses and making them unaffordable for lower middle classes and poor people .,
But still my topic is to discuss my thoughts on investing in properties and i don't want to deviate from it further.
Basically you can earn two kinds of profits from your house/apartment.
One is the capital appreciation : which is nothing but the increase in value of your property.As i already said most of which are caused by the demand caused by the people.So its actually a artificial price rise.On the otherhand there is also a natural rise due to development of areas.
The second income from your house is the rent which you can get from the tenant.
Most of the people knows about these two income but their is one more income which can be said as an income as it saves you your money.
Yes owning an house by getting a loan can save you from paying taxes., Most of the people don't know about this and some will not utilize this as they don't know the way to use it to prevent from paying tax.
Recently when i was discussing with my friends about Property rates in US , suddenly i said "bubble". One of my friend asked "what is the meaning of it as am often hearing this word in news channels and papers?". Though i know only a little about it i didn't show in that way and just explained him whatever i know.
Actually earlier i told about artificial increase in prices of properties ,there is a special term to describe it called "speculation". This what happened in US , people started buying properties by getting loans from banks and when one day the prices started falling due to the bubble caused by this speculations they didn't had choice and they didn't pay their premiums properly as the loan amount was higher when compared with the value of their property.
Naturally their will be some resistance if you were asked to pay double for a product not worth it.
Now a second question aroused , Is their any possibility for the same in India.,
What will i answer ??? :P Hey idiots am not an expert to predict all this things.,But how will i answer this as i was already formed as a genius among my friends .I just stayed calm for sometime and asked them like "Is their any possibility of Earthquake in Chennai ?(Madras , Tamilnadu., India)". They replied like "There is less chance for such an incident to occur"., Even i expected the same answer from them , i said similarly there are chances for a bubble like situation but less :).
Though the above situation is hypothetical to discuss , there is some small amount of chance for happening.But these are just information which people have to keep in mind especially people who are chasing properties for gains.As they are the people who are in risk than the people who buy for their own living.
There is one saying "When earthquake comes beggars will become rich and rich people will become beggars"
But these things should not stop you from dreaming for your own house .,
You can have a look at the banks which offer better rates by clicking here
House loan rates
To know about EMI and Eligibility visit the site later :)
Wishes for building/buying your dream home!!
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