Indian Real Estate is Overrated - Does Buying a Home is even right bet?
India being a country of not-so-good infrastructure, development, connectivity, and much more in specific. Once a great rain hits, all the roads are filled with water, cars become ships, and houses become pools. Even in major cities where daily commutation is at its peak and vehicles are numerous.
It all boils down to—does real estate really worth it in India? The taxes to acquire, the taxes to build, and the whole process of buying a piece of land or a home is so complicated, clueless, and abstract. To be better is all a glamorized scam, I believe.
What does land price depend on? Maybe it's a highway-side property, near all good facilities, with great infrastructure, or in a capital city, a Tier 1 city to be precise. But most commercial and house-based land is acquired by big players, and there are no specific parameters. If all of them collectively do a monopoly of fixing a price range, everyone falls into that trap. Same goes for apartments, flats, and more, being rapidly built and sold from Tier 1 to even Tier 2 and Tier 3 cities. If a locality has 4 apartments being built and they collectively decide on flat prices per sq ft, does it even make sense? How fair are these numbers?
Is a middle-class person even eligible, financially, to own a house? I get the emotional side of it, but I don’t think people are buying based on that core belief anymore. The prices of flats, even in Tier 2 cities, are so inflated that people buy them just for competition, social status, and virtue signaling.
Many people are buying just because others are buying. Buying a home just because your colleagues, friends, nephews, or neighbors bought one is the dumbest way to make such a big decision. Never buy in FOMO. Paying 2x the loan amount for 20 years in this unstable job market is so fucking dumb. A bad home-buying decision can destroy generational wealth, not just yours but your kids' and future generations'. I’ve seen so many uncles buying stuff not based on necessity or lifestyle but just to mimic others, thinking it makes them look cool, gives them status, or gives a dopamine hit—only to regret it later when drowning in loans.
So when should you buy a house?
When your family has multiple earners, creating a financial safety net.
When you have a solid amount of passive income flowing.
When you're sure you’ll stay in that place for life and have your people there.
When you have good credit and extra cash beyond your daily living needs.
If you’re buying in a Tier 1 city, where rental income is decent. In Tier 2, there’s barely a chance of resale value, and rents won’t even be worth your 20 years of EMIs.
Having a home is important, but is it really if you’re not happy? Is it really if your home isn’t filled with love first? Is it really if you can’t afford a reasonable lifestyle? Don't get attached to just the material of a home—fall in love with the vibe, people, and memories inside it.