Real Estate is Tough for Salaried People

Salaried people have all the money in the white where they get the money every month and after the taxes they have the money with them. If someone who is salaried wants to buy a land or flat they have to arrange for the down payments as well as look for loan. Now once they have the loan, they have to pay the loan every month with that white money.

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Now compare this with people who are in business or who have the black money. For them they can pay most of the money via black money and some part in white money. They can buy 10s of flat via this way. The politicians and other business people use the black money to buy land. For them this is teh best way to convert their black money to white money. And because of this way the prices are usually hiked up. They don't want to sell in low price and thus this makes the real estate quite expensive.

Now think it as a Salaried people, for them they have the limited money after their expenses and they also liked to have their own house and thus they get into the viscous cycle of EMI and loan. If I talk about Bangalore, the prices are hiked up like anything. The 2 BHK house out here is usually above 1 CR or 133K USD. And people are buying it with paying the EMI every month.

And the Non Resident Indian is also earning their money in Dollar and buying the real estate in India which again increase the price like anything. Recently one of my collegue booked a flat for 1.25CR and he was telling that a NRI have bought 5 flats in the same building to ride the real estate wave.

In Bangalore, whether you are buying a flat or land, the prices are actually unreachable for the general public because of the black money itself.

Posted Using INLEO