Friday, May 8, 2020

Why & How Should I Buy a Home?









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“When going get tough the tough gets going”...

Don’t know who wrote this phrase first but one of the most “ghisapita” (most used, Bollywood meaning) dialogue in Hollywood movies & apt for today’s real estate industry! Ok, its meaning in simpler words is, “when the situation becomes difficult, the strong (man or woman) will work harder to meet the challenge when it gets hard”. Well, well, real estate may be the hard field to survive but the men related to it were never much famous to meet the challenges itself in first place leave apart hard challenges! This I am speaking as general perception as well going by the history (not very past) of the real estate. Just a decade back all was well & everybody was singing happily (read as making money) but something went wrong (well no one yet has found what went wrong) & the hip-hop songs changed in to sad ones, money is still there but one has to dig a lot for that & challenges are getting harder by day! And on all such backgrounds when personalities (read as public figures or leaders) speak something about reducing rates of real estate i.e. flat rates then masses i.e. “aam janata” does get influenced by such words (that’s why they are aam janata). And anyways in our country most so called big names as well leaders speak only what aam janata wants to hear instead speaking facts but that’s why India is special! In the latest entrant on stage of advising (sorry read as bashing) builders is one senior central minister of ruling party & he has advised builders to sale the flats (read as flats/row houses/plots/offices etc) on No Profit No Loss basis if (NPNL) they have to save their skin mean not to get bank-corrupt! Wonderful advice of course as he must have seen the future ahead for builders & that must be the cause behind such words & sure good intentions also. As what point in getting bank-corrupt & go behind the bars which many of the builders have experienced in past. As well he must have thought of the thousands of the flat holders who have booked their life time in the ongoing project & what happen to their dream home if the builder himself goes in jail instead completing the project. And then the present war with the virus will be on for some time sure & many business will get hit which again can affect the housing sale, is also he must have thought & to avoid all such bad future, the best way is sale it friends at whatever price you get but sale it!
Thanks Hon Minister sir, we highly appreciate you good wishes for real estate as well its clients but few doubts are there in the minds of the builders as well the existing & prospective buyers of the real estate (yes there are many still). 

The flat purchasers on one side are already baffled (confused) by their own financial safety & then there are other few names also who with same noble intention like yours has advised to sale the flats by reducing prices by 20%, which can match to your advise if at all there is profit of 20% in real estate! As why this sympathy towards just builders in first place, by all of you respected personalities! As more than builders think of travel, tourism & hospitality industry which is in dire state due huge cancelations of travel plans of millions & their main vacation period has gone for toss! Why can’t you advise the hotels like Taj Mahal or Oberoi to offer their rooms at NPNL (No Profit No Loss) basis as well the air travels & yes the restaurants & posh lounge bars, to come up with buy one get two type offer on drinks & food!  Then there are many  rental flats also & thousands of families survive on the rental income of their flat, please guide them for charging rent for just alternate month, who cares where the elderly family dependant  on that rent survives or not as first ensure the income guys, is the key, isn’t it? As well the Mercedes & BMW’s also can be advised for selling on same guide lines of NPNL & all the suppliers of the real estate! As if the builder is to sale NPNL then his all contractors & suppliers too has to follow the same path, right? Oh, lastly sir, before going to builders or any business why not our bankers (especially nationalized banks) & financers which charge nearly 18% & plus plus interest to the builders as well every to private mid or small industry (big industries are blue eyed boys) are to be ordered (as its govt’s baby) to charge interest on NPNL basis to every business. As look at the interest rate they pay to the individual depositor & rate of interest they charge to businesses (read as builders). As when a builder or any other industry if at all has to sale their product on NPNL basis then every segment associated to them has to be applied same scale is the logic, right?

And then the Billion Rupee (read as Million Dollar) question is if I have to sale at NP NL basis then why I should build a project or manufacture a product in first place? And second Billion Rupee question, who defines any businesses’ profit or loss! And the third Billion Rupee question, will the Income Tax dept accept my sincere say that I have sold all my product on NPNL basis so I won’t pay any tax or will the govt come with such scheme where I declare I have sold with NPNL basis so under that scheme no income tax will be charged to the said builder or the manufacturer!These are few question which came to my mind so thought I should ask, at least the flat buyers will be enlighten or how else they will know the builder is selling at NPNL basis & get benefited with it? 

Now coming to the flat buyers & ongoing project’s booked clients (means which has booked & awaiting possession) as reading, listening & watching (on TV) all such great wisdom words from different personalities they must be thinking what should I do about my home? Well, my message to all the existing flat holders is more than you the builder needs to complete his project as then only he will make some money, so for any doubts speak to your builder about scene of ongoing work & then act! For those which are searching their own home, use your brains & decide instead going by who says what! Know your needs & in any case a home in city like Pune or Mumbai is bound to be a costliest product so weigh your options carefully with your finances & buy as soon as you can where you are sure. This I am not telling as a builder but as a logical mind or common sense, you can call it & if you don’t trust me (sure you won’t), then speak with any of your friend, family member, colleague or even a stranger who owns a home today in Pune from last say five years (read as in any city actually) & ask about right or wrongness of his or her decision in buying it! If even three out of the ten persons you asked this question will reply, that they have made a mistake in buying a home of their own, then don’t buy right now. Either you can wait or start searching on rental basis your home as you can’t live on footpaths or shelters for homeless people by PMC, right?
And I am not luring you to buy a flat by saying (read as pushing) that this is best time to buy & when things will start rolling then the real estate prices will be high, types things. As nobody is or will be in position what will happen in coming year or ahead of it in any industry is a fact! But then when you are uncertain of future (philosophically speaking that’s why it’s called future but that different story) what you do (read as you should do) is invest wisely to secure the future in best possible way. And a home is only option which if on one side gives you safest & best shelter for your use then on other side it’s the best possible investment too. And I am not saying this again as a builder as gold is one parallel option which is doing well even now but you can’t live in the gold coins, can you? As there were, are & other options right for securing your future from bonds to nationalized bank deposits to insurance & yes “Sahi Hai” wala mutual fund too!  Well, I am sure that each of you is more wise or smart than me or any other builder when it’s investing of your hard earned money, so won’t tell you what’s best for you from all above options.

And then many of IT firms now seriously thinking of operating from home for their majority staff, TCS has already announced that by 2025 their 3/4th staff will work from home for ever i.e. despite this virus thing. It does make sense as it will help these all companies which are mostly IT & Service based or Online Cos’, to reduce their over-heads for maintaining air conditioned office spaces. And in a way its boon for the city infrastructure, also it means reduction in vehicles though it’s going to affect Metro revenue but that’s another aspect of sharing. For now as an employee, Pune offers works (read as jobs) which is first need for survival for any person & then when you have a job you will need a home. And even if that home is a rental one then somebody has to buy it to rent you the same, is a fact.  By one approximate guess, over 6-7 lakh people have fled from Pune to their native place & it will be temporary as all these places won’t have the money or the life style these people are used to. And most of these are the ones who don’t own a home in Pune, so they will have to start afresh when they come back for looking at rental accommodation if they decide not to buy a home. As well those who has 1 bhk will have to upgrade for 2 bhk if husband wife both are going to work from home & so will have to do 2 bhk guys to 3 bhk, is again a common sense.  And then what’s use of amenities like swimming pool or community hall for few years for now but lesser monthly outgoings also can be one aspect while choosing a home as well focus more on children’s establishments if you are any way working from home! Though location & infrastructure like transportation, education will always have its own importance when its home.

Friends, to conclude all I will say, many things will change here after & life may not be same as it was but the importance of owning a home will always will be there as land is limited but opportunities & population are infinite, especially in city like Pune; choice is yours only, as after all it’s your life! Stay Safe, Stay in your Own Home!
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Sanjay Deshpande 
Sanjeevani Dev.

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