Buying flat is easy but...: CA shares his laid-off Pune techie friend's story

Time of India

2 days ago

A Costly Dream in Pune
Another Case of Strain
A Different Experience
The Larger Debate
For many young professionals, securing a high-paying position often feels like the perfect moment to take the plunge into homeownership . The dream of buying a modern apartment or luxury flat is hard to resist, especially when steady income and bank loans make the prospect appear within reach. However, financial experts caution that the reality of sustaining such commitments can be far more difficult than the initial excitement suggests.Chartered Accountant Nitin Kaushik recently highlighted a cautionary tale from his circle of friends. One of his acquaintances in Pune purchased a premium apartment in 2021, priced at an eye-watering ninety-five lakh rupees.To secure the property, he paid thirty-five lakhs upfront and borrowed sixty lakhs through a home loan. The terms locked him into twenty years of repayment, with a monthly installment of fifty-two thousand at an 8.5% interest rate. Initially, the purchase seemed like the ultimate achievement of stability and success. But when he unexpectedly lost his job, the picture changed drastically. Today, he spends his time juggling interviews while simultaneously worrying about how to manage his heavy loan obligations."Buying property is easy. Holding onto it during downturns—that's the real challenge..." he wrote.Kaushik's warning echoed a similar incident shared by an account named Wealth Whisperer. In that example, her relative had invested in an apartment worth 1.3 crore a few years ago. With a hefty down payment of fifty lakhs and monthly installments of seventy-eight thousand, the family managed to keep up while employed in a multinational corporation. But when the breadwinner faced job loss, the financial burden turned unbearable. Wealth Whisperer eventually advised her relative to sell the property and chart a new financial plan rather than let the loan obligations drown him.Also read: Bengaluru techie bought a Rs 1.3 crore flat then suffers sudden layoff. Rs 78,000 EMI becomes bigger stress Not every homeowner painted a grim picture, though. One social media user compared his own journey with a more optimistic outlook. He had purchased a flat for sixty-five lakhs in 2020, making a down payment of twenty lakhs and financing the remaining forty-five lakhs. His monthly installment came to about forty thousand, but he revealed that the flat could now easily fetch a rental of fifty-five thousand or be sold for a market price of 1.5 crore. For him, renting out the property at one stage even helped repay part of the loan. Today, he feels confident that with the support of his provident fund, the remaining debt can be cleared smoothly.The stories sparked a broader discussion online. Many questioned whether it truly makes sense to buy expensive apartments in uncertain times or if renting remains the wiser option. Wealth Whisperer responded by clarifying that no single answer applies to everyone. The decision, she explained, depends on individual savings, the stability of one's income, and prevailing rental rates.Others contributed their philosophies. Some preferred paying in cash upfront to avoid long-term debt. Others warned against loans unless backed by secure employment, noting that only government workers could rely on consistent stability. Wealth Whisperer, however, reminded readers that over 90 percent of Indians work in the private sector and still aspire to buy homes. According to her, the real key is not avoiding homeownership altogether but carefully weighing risks before committing to large loans.