Bearing the brunt of rising EMIs
Off late there has been lot of media coverage about the sudden rise in interest rates and consequently the rise in EMI payments for home loans in India.
There are some who crib, and there are some who have that ‘Thank God i did not purchase any property in India’ look in their faces.
But who actually are the end sufferers? Its the homeless middle class of course. One may wonder how a homeless person can suffer when EMIs go up. But as is always the case, the relatively better off always manage to pass off the burden to their less fortunate brethren. In this case, the rising interest rates have resulted in nothing but an increase in the rent. 2BHK apartments which were available for rentals for as low as 6000 Rs. till last year in velachery are being quoted for 10-12K now. House owners simply say they cannot afford to let the house for lower rent because of rising EMIs. My manager has fixed a decent apartment in Adyar for a monthly rent of Rs. 21000 (maintenance extra).
Inflationary times indeed!
May 29th, 2007 at 9:54 pm
what’s the going rent per sq feet now ? lets say in a place like Adayar .
May 31st, 2007 at 4:53 am
I still feel the biggest suffering group is the one which bought the house to live in it than the group that is simply looking for a house to stay, temporarily. I own a EMId house and every six months the EMI is being revised and the principal left to pay is staying in the same place. Now I am desperately thinking of disposing the house off ASAP as the recoverable is getting bigger instead of getting lower. This is my nightmare scenario that the bank who financed my home never talked about. Thanks to the “Secular” UPA government with Sonia’s children, I am living the nightmare every month.
June 1st, 2007 at 10:50 am
sree
I think its around 15 Rs. per sq.feet
sorry for not responding earlier.. marandhutten!
jaiganesh,
I think the best solution is to pay off some amount towards the principal.
regarding ever rising intererst rates, this too shall pass. so chill
June 4th, 2007 at 4:10 am
Prabhu!
There are some weird clauses related to fore closure and lump payment of certain installments which are extremely against such a move(of closing off a certain amount of principal) in the form of penalties. Banks are in a “win win situation” as the customers are caught with nowhere to move unless the interest rates come down. Certainly RBI and Union finance ministry could have delinked the lending rates from savings rates as there are millions of enthusiastic but less cautious ppl like me who rushed into buying a house which is now a high maintenance, high recovery tool of torture and source of recurring nightmare rather than a peaceful abode.