Brics and straws

Brics and straws

Brics Bank has its own limitations, and let us hope it will...
Much ado about execution

Much ado about execution

Effective delivery must be brought to the centre of policy-making...

Small house? Not a bad idea

Jan 12 2013, 09:40 IST
Comments 0
Home buying is a very important decision that everyone wants to take with immense care. (THINKSTOCK) Home buying is a very important decision that everyone wants to take with immense care. (THINKSTOCK)
SummaryHome buying is a very important decision that everyone wants to take with immense care.

Home buying is a very important decision that everyone wants to take with immense care. To avoid post-purchase guilt, the buyer puts in maximum effort in shaping the best decision to buy a house. Many buyers take an extra leverage on the existing financial position to acquire more space and make the house a dream home. But then, a “big house for better living” is not always true.

With rising population and shrinking spaces, a big home is getting far from the reach of a family with an average income. Many buyers want to own a big house over and above their financial capacity based on the following misconceptions:

Buyers thinks that a home is not purchased everyday so put in everything to avoid any regret in the future. (Fact: It’s better to assess space required and buy accordingly than to buy an oversized house.)

A big house can be rented/sold partially if not required but a small house cannot be stretched if more space is required in the future. (Fact: Small house can be sold easily to buy a bigger house if required in the future.)

Only big flats are available at a good locality. (Fact: Small houses are more in number and it has wider market than the bigger homes.)

Buying a big flat would help in gaining higher social status and it helps in impressing friends or relatives. (Fact: The way you live is more important than where you live.)

Deciding on downsizing

Apart from the aspects discussed above, sometimes property agents make a false commitment or employ other tactics to earn more commission from the buyer.

There are many instances where a buyer finds it difficult to pay the EMI having purchased an oversized home.

It is always better to downsize the home and shift to a smaller one to avoid falling into the debt trap.

It may be wise to settle for a smaller house if one falls into any of the following situations:

Jobs that require shifting often: The job may force you to shift the place temporarily or permanently, in such situations it is better to own a small home because fund involvement is very low and it is easy to sell such property fast.

Weak financial position: The fund arrangement is a big issue while buying a house. If buyer finds it difficult to arrange funding and there is no certainty to increase the flow in future then

Single Page Format
Ads by Google

More from Estates

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...