Decoding the Housing Puzzle: From Affordability 3 Decades Ago to Financial Challenges Today and Tomorrow
3–4 decades ago, despite lower salaries, our previous generations could easily afford land in a capital city.
Today, despite higher incomes, our savings rates are low.
The middle-class sectors face difficulties in affording property even with 70% of their savings.
20 years from now, people may earn well but struggle to save enough.
This poses a challenge for coming generations too.
Why this trend?
1. The economy has evolved, and our official inflation is 5–6%, which is a joke.
2. The gap between income growth and the rising cost of living has made homeownership go beyond the grasp of the middle class.
3. Indirect taxation is at an all-time high. (If you try to save, you will struggle more).
4. A growing number of individuals are migrating from villages to capital cities, creating a demand-supply gap.
So, what can you do?
Do what 90% of people are not doing.
1. Start by saving at least 30% or more of your salary.
2. Invest and multiply those savings.
3. Avoid buying properties on EMIs for 20 to 30 years.
4. Don’t run after every exciting offer.
