Latest news with #WealthWhisperer
Hindustan Times
39 minutes ago
- Business
- Hindustan Times
Laid-off Bengaluru techie's ₹78k EMI sparks rent-versus-buy debate on homeownership
The story of a laid-off techie in Bengaluru has sparked debate on X about the risks of buying expensive apartments. The professional had purchased a ₹1.3 crore flat two years ago, putting down ₹50 lakh and committing to an EMI of ₹78,000 a month. After losing his job recently, his cousin, posting under the handle Wealth Whisperer, shared his financial struggles online, suggesting he sell the flat and reset his plans. A laid-off techie in Bengaluru, struggling with a ₹ 78k EMI on a ₹ 1.3 crore flat, has sparked an X debate on the risks of costly homeownership. (Representational Image)(Unsplash ) "Given the global headwinds, one should wait for some time before investing in a home loan if the person is dependent on one source of income," she told While homeownership offers a sense of security, steep EMIs can quickly turn into a burden when income stops. 'Monthly EMI becomes a nightmare when salary disappears,' one user wrote. Others, however, argued that property ownership still makes sense if EMIs are lower than rent, noting that unlike rent, EMIs remain fixed and do not increase every year. Also Read: Will Bengaluru real estate market be impacted as tech layoffs impact tenants and buyers? Experts weigh in Renting versus buying an apartment Her post quickly struck a chord with thousands of readers who weighed in on the classic rent-versus-buy dilemma. 'Is it really worth buying costly apartments these days, or should we just rent?' the user asked, adding that while owning a home feels like security, EMIs can end up owning the buyer. 'Renting gives flexibility, buying gives stability. Question is, what do we value most in today's economy,' the user asked. One user argued that property ownership still makes sense if EMIs are lower than comparable rent. 'You will, in any case, rent if you don't own. But unlike rent, EMI won't go up every year,' the commenter noted, while advising the family to consider selling the flat and moving to a Tier II city where costs are lower and homeownership more attainable. Others took a harder look at the risks of leveraged buying. 'The harsh reality of leveraged property purchases during uncertain times! Monthly EMI becomes a nightmare when income disappears,' another user wrote. They suggested a temporary moratorium from the bank, selling family gold to reduce the loan burden, and searching for a new job within six to seven months. Several voices echoed the view that Indian metros are increasingly unaffordable for middle-class buyers. 'Metros are now out of hand for a while. Sell the flat, shift, and invest in a Tier II city,' one commenter said, stressing that lifestyle and cost of living could balance out even if salaries are lower. The conversation also highlighted a broader financial lesson: the importance of emergency funds in cushioning the shock of layoffs and unexpected income disruptions. As one commenter summed it up, 'Dream homes can wait. Savings for survival can't.' Also Read: TCS layoffs: Will job cuts in the tech sector trigger a real estate downturn in Bengaluru? No safeguards in home EMIs in case of job losses, say financial experts Financial advisors say the case reflects a broader gap in how buyers prepare for long-term liabilities like home loans. 'Mainstream insurances may cover one to three months of EMIs, but there are no safeguards against layoffs,' explained Suresh Sadhgopan, a financial advisor. 'Borrowing money is a contract, the bank is looking for money back. If someone is laid off, they still have to pay.' Sadhgopan emphasized that anyone taking a home loan should maintain a liquidity buffer. 'For a major borrowing like a home loan, it's critical to keep a six-month to one-year corpus that can be liquidated in emergencies. That cushion makes it easier to manage shocks like job loss. Without it, there is very little room to manoeuvre.' He said that industry turbulence, especially in IT, makes such planning even more vital. 'For young professionals, it makes a lot of sense to stay on rent until the age of 35–38 and build a stronger financial base. Heavy loans and liabilities should be avoided when job markets are uncertain. Always have a plan B. Job losses are no longer unusual.' Professionals should set aside six months to a year's worth of EMIs as a buffer for home loan repayments, say experts Experts said that today the IT industry is turbulent, but that's also true for most industries. 'The simplest rule is that every borrower should be able to secure six months of EMIs as backup. For people in senior positions, or in industries where re-employment may take longer, keeping a one-year buffer is even more important,' Sadhgopan said. He explained that the job situation is crucial when one is making heavy investments like a home loan. 'My advice is simple: don't take on huge loans and liabilities when things are uncertain. If you do go for a loan, you must assess everything in your life carefully. Always have a Plan B. Job losses are not unusual anymore.' Bengaluru's housing sector dependent on IT headwinds, say experts Several tech firms have rolled out large-scale layoffs to rein in costs and streamline operations. At the same time, the rapid adoption of automation and artificial intelligence is reshaping the IT job market, with demand shifting toward niche skills in emerging technologies. While this transition is creating opportunities in advanced tech, experts note that hiring for traditional IT roles has slowed. According to Vestian Research, the IT-ITeS sector accounted for 40% of all real estate leasing in the city in 2024, highlighting its heavy dependence on the tech industry. With global tech firms continuing to announce layoffs, a decline in hiring and rising job losses could trigger a chain reaction, delaying home buying and rental demand, experts say.
Time of India
4 hours ago
- Business
- Time of India
Buying flat is easy but...: CA shares his laid-off Pune techie friend's story
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 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 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 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 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 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 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.
Time of India
a day ago
- Business
- Time of India
Bengaluru man's Rs 78,000 EMI on Rs 1.3 crore flat turns into burden after layoff. Sparks rent vs buy debate online
Owning a dream home in Bengaluru is often seen as a milestone, but for one family, it has become a source of stress. A story shared on X by a user called Wealth Whisperer has stirred a heated discussion about whether buying property in India's metros is worth the risk compared to renting. Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency Wealth Whisperer narrated the story of her cousin's husband, who purchased a flat worth Rs 1.3 crore a few years ago. With a hefty down payment of Rs 50 lakh and monthly EMIs of Rs 78,000, the family managed to keep up—until a recent job loss from an MNC turned the investment into a financial strain. She revealed that she advised him to sell the flat and start afresh with new plans. — chai_and_chat (@chai_and_chat) by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo Internet debates The post sparked strong reactions. One user compared it with his own experience, saying he bought a flat for Rs 65 lakh in 2020, made a down payment of Rs 20 lakh, and took a loan of Rs 45 lakh. His EMI came to around Rs 40,000, but he claimed that he could now rent the flat for Rs 55,000 or sell it for Rs 1.5 crore. He also added that at one point, he rented the property out, used the proceeds to repay part of the loan, and now felt confident he could clear the balance with his PF. Others weighed in on the bigger question. 'Is it really worth buying costly apartments these days, or should we just rent?' asked one user. Wealth Whisperer responded that there is no universal answer, explaining that it depends on a person's bank balance and the prevailing rent. Some users shared their philosophies on money. 'That's the only reason I pay in cash: one-time payment, no EMIs,' wrote one. Another questioned the wisdom of taking on debt with an unstable job, suggesting that only government employees enjoy true security. Wealth Whisperer countered this by claiming that over 90 per cent of Indians are in private jobs and will naturally want to buy homes, but the real key lies in calculating the risks before taking on heavy debt.
