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The youth brigade buying houses
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The young brigade no longer dream; they just buy what they want.
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Till recently, owning a house was considered once a lifetime deal. It was only around retirement time, that earlier generations used to explore the possibility of purchasing a dream home. And those who could not manage to acquire one were left with certain amount of regret that was hard to ignore.
But, times have changed, perceptions have dramatically metamorphosed and so has the paradigm of owning a house, thanks to the unbridled purchasing power. The GenNext, with huge purchasing power, has brought about a sea change in the real estate sector.
The young brigade primarily those employed with IT and ITES companies has fuelled the boom in a way that was hitherto unimaginable. A host of factors went in their favour and since the ground was ripe for exploitation by the developers and builders, the city began to expand at brisk pace. Peer influences, aspirations that changed diametrically and veered towards property owning and jobs taking them around the globe and sown seeds of dream homes had them looking around for an appropriate property call their own.
From inception, the focus of this young generation with big dreams for a dwelling from inception of the trend has been around the emerging vicinities of IT facilities. The preferred choice narrowed down to a radius of 5 km from the workplace and this can be seen as an effort to avoid chaotic traffic, so ubiquitous in the city. And depending on their pay cheques, they are opting for either ‘no frills’ flat or a fully-furnished studio-duplex.
Market analysts say factors such as tax benefits and saving house rent allowance are influencing the high-salaried groups to invest in real-estate business. For employees getting salaries between Rs.50,000 and Rs.70,000 and more, banks are extending loans up to Rs.30 lakh to Rs.35 lakh facilitating them to get a home. “Tax benefit coupled with easy bank loans is helping us buy a flat. The aspiration to own a home is all pervading and moreover, it will be a fixed asset that will be helpful in future,” explains Ramakrishna Kuppa, a software engineer, who purchased a double-bedroom flat for Rs.32 lakh in Hyderabad. Most employees working in Hi-Tech City in Hyderabad and its surrounding areas purchased houses at Kukatpally, Miyapur, Chandanagar and Nizampet seeking immunity from heavy vehicular traffic. “To avoid the stressful chaotic traffic conditions of the city that I had to wade in reaching office from my residence at Dilsukhnagar, I purchased a double-bedroom flat at Nizampet for Rs.25 lakh,” explains S. Vamsi Krishna, a senior software engineer in Motorola Company, Madhapur.Another factor contributing to the increasing spending in the real estate sector is because of working couples. While one’s salary goes for running the home, the other salary is reserved to pay the housing loans. The practice of some companies to allow its employees to work from home also made a section of this generation look for a comfortable place to settle down, says Vikram Mohan, a consultant in Satyam Computers. The heavy lending by financial institutions to the high salaried IT staff is also seen as a major factor in the whole process. Given the kind of loans and easy processing that the banks offer, the young property seekers have the luxury of not having to hesitate much in chasing their dream home.
“When borrowing power increases, purchasing power definitely increases,” explains K. Pratap, Managing Director, Golden Gate Properties.
M. SRINIVAS
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Property Plus
Bangalore
Chennai
Hyderabad
Kochi
Malabar
Thiruvananthapuram
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