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Rediff.com  » Getahead » Planning to buy a new house? Terrible idea!

Planning to buy a new house? Terrible idea!

By P V Subramanyam
Last updated on: July 19, 2016 12:45 IST
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If you are in your 20s, renting out an apartment and under pressure from parents and peers to buy that dream home, just make these solid arguments to tell them why it just doesn't make any sense!

As soon as you qualify and take up a job, there is tremendous pressure on you to do a few things. Older people who have nicely messed up their own lives keep asking you about your next move.

So if they are not asking about career moves they are asking you (or, probably, telling you) about your finances.

I am sure if you fit this age bracket you must have heard someone telling you one or all of the following things:

 
  • A home is a good investment
  • Inflation makes the EMI very cheap
  • Real estate prices NEVER go down -- they always keep going up
  • You can always sell it or rent it when you want to move
  • Paying rent is throwing away money -- at least the house will belong to you at the end of the day
  • Buy a house soon and buy as big a house that you can afford to buy -- after all you may not buy too many houses!!

But here's why these arguments lack strength and conviction:

Click on each of these blocks to find out!

Do you agree/disagree with the author? Use the message board below to express your views.

Illustration: Uttam Ghosh/Rediff.com

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P V Subramanyam
Related News: EMI, NEVER, Uttam, Rediff