"I want to buy a house, but the prices are too high"
Or the Expectation?
We often see people talking around the places to buy an apartment this year or the other. But have you ever noticed that eventually only a handful of them can purchase. Why?
After spending time analyzing this pattern, I have realized that the gap often lies between what people need and what they want. The dream home they envision and the price they are willing to pay don't always align.
Aspiration to live in a high-rise apartment with an ample open space, clubhouses, lush greenery, endless amenities, etc. drives the price we pay. PAUSE - DO YOU REALLY NEED ALL THAT ?
"Need Vs Want"
Our need is to have a safe, decent house in a good location with access to our daily essentials like supermarket grocery stores, public transport, school, hospitals. etc. However, our want is to have a high rise apartment, large club house, open spaces, lush green environment, etc.
Sellers know this and play a marketing gimmick to influence the buyers by showcasing the amenities with attractive renders and an audio video presentation on your site visit. But nothing comes for free. There is a cost of maintenance you end up paying perpetually for something you may even not need it or ever use it. It's not that the amenities are not good or the open space with lush green environment is not preferred but wait and think wisely - is it your need or want.
Now, how to understand your need and want. In simple terms, ask yourself - is it your first home or an upgrade? If it's your first, then its your need and not your want. Hence, secure a home that fits your budget and lifestyle first and then look for an upgrade later when your finances allows (refer my last post on this).
By the time you get possession, you may have paid nearly double the original cost due to interest, delays, and hidden charges. And unlike land, apartment values often depreciate over time. So you’ve paid more for something worth less by the end of your loan tenure. Is it really wise?
"Home is an Emotion, not an Investment"
A home is where you build memories, not just equity. Let’s move beyond the fantasy of oversized homes and extravagant amenities, unless you can comfortably afford them within 40–50% of your total income.
Buyers often underestimate their power in the demand-supply equation. We obsess over RBI rates, construction costs, and seller pricing but rarely pause to look inward.
Don't fall into the trap of comparison, trying to match someone else’s lifestyle or asset portfolio. What works for them may not work for you. Stretching your finances to chase someone else’s dream can lead to stress, compromise, and regret.
Before making a big decision, it's always wise to sit down with your spouse, kids, and loved ones - FAMILY COMES FIRST to discuss and understand your needs and wants. Evaluate your financial commitments, your lifestyle, and your long-term goals. No external expert knows your situation better than you do.
“Need First and Wants Later”
It's not always the market that makes home prices feel unaffordable but sometimes it's our own elevated expectations. When we pause and have honest conversations with our family about what we truly need versus what we want, clarity emerges. That clarity can guide us toward a wise decision, one that aligns with our financial reality rather than stretching our budget to its limits.
Be careful and always remember that there is no harm in fulfilling your needs first and then aim for a desire, not the vice-versa.
In my view, the wisest thing you can do is to fulfil your needs first. Desires can wait. Let’s slow down, think clearly, and make choices that bring peace, not pressure.
Don't forget to invite me on your house-warming ceremony 😊
My best wishes !
