R2Iing woos increase for non-planners. Its now or never

A good close friend of mine went back to India on account of visa restriction. He had to be there for a year and come back. While he made up his mind of not settling in India, this short forced change was giving him a tough time.
 

For starters. after staying here for 7 years there is a sea change once you land in Chennai. Huge traffic snarls welcome him at Chennai. The worst problem started once he started going to office there. He had no option but commute from Chetpet to OMR. The travel time on a average is 2 hours one way.

The company bus picks him by 7.30 am from his hime and he reaches office by 8.50 to 9.15 AM purely on the mercy of traffic. Sultry wheather added to his woos. With company bus not having A/C, traveling for 2 hours and hearing those loud honks will give headache to any one.

The evening travel starts at 6.30 from his office and if traffic is fine, he reaches home by 8.30 PM. just have time for dinner and go to bed. No evening time, no tennis, no volleyball and evening walk. All those simple routine fine suddenly becomes a luxury.

He can travel by his car. but driving a night mare and changing from automatic driving to manual and driving in Chennai road is a challenge by itself. ThanK god i still drive a manual corolla here. On top of it is the high petrol price. His ALTO gives him 13-15 KM per Litre and it is average 5 Litres per day. Hiring a driver would set you back by another Rs. 4000-5000

SO WHOM TO BLAME FOR SUCH A SCENARIO. ARE YOU PROTECTED FROM FACING SUCH A SCENARIO?.

You would be protected only if you have a home near the office. Believe me there is nothing like driving to work and that too a short drive. I used to live in velachery and OMR was just 12 KM and it usually takes 20 minutes to reach home and 30-35 minutes during traffic snarls. Still traveling by car was affordable rather than taking a company bus.

So guys, i would advice you to plan well your RETURN TO INDIA. Of course you can rent a home near your work place. But as in my friends case, they had a huge home in chetpet and his parents where staying there. So difficult to come out independently.Also with rental rates rising, one would rather pay EMI and buy a house then pay rent.

If you think prices would drastically go down for Apartments, then you are wrong. Because of current economic condition, Land cost might come down, but not the construction cost. It takes an average 1500 for building + Land cost + builder margin. So it would cost the builder any where around 2100-2200 for finishing a project per sq ft.

I don’t think the prices would drastically change for DLF,TVH,Purva etc etc.So plan well, invest in a apartment which is strategically located near your work space and avoid problem mentioned above.

INVEST with in a year or so. If its not now than its never.

2 Comments

  1. Hello everybody.

    I just wanted to share few things that is going on around us. Regd the inflation rate I dont know what to say as Indian Market is 3 times higher than last couple of years and US has increased price for petrol, Uk has also increased the rate infact there was a strike which went on last week in Spain regd the cost of living. I don’t know where is this going to?? Think abt people who don’t have even a single own house and what abt people who are in non IT industry and are intrested and have desires in purchasing a own house as it is greatest achievement of anybody’s life. My friend packed everything from US and went to India thinking of leading a peaceful life. Apart from domestic help, he is struggling for school admissions, fees, long queue in traffic, high humidity, increase in electricity bill, maintainence charges on top of this commitment towards house and we all know that there is no value for RS 100 as you will get just 2 lts of petrol which you cant even reach 3 kms with Chennai or any metro traffic. There are speculations abt increase in int rates for home loans as all banks are loosing money in lending loan with high inflation rate of 8.5 percent. Though I am not an economic student I am interested in Indian econometrics and always be in touch with various markets(UK,US,INDIA,CHINA etc…..) . Though there is an improvement in transparency of Indian Govt (As told in National Statistics as India has improved its corruption state of 7 per to 6 percent) inflation will continue for the whole year as predicted by experts. Uk has already increased train fair from Jan 2008 and is planning to do so again in near future.
    Does anyone imagine the status of metros in India ?? Where is this going to??? Can anyone share their views ???
    http://www.ramastuti.blogspot.com/
    Sumana

  2. mahesh

    Just to add a few comments to the thoughts given above:
    The problems mentioned above in chennai were always been there and it is not new to any developing economy. I am seeing similar trafic conidtions even in a developed country like Australia and the only difference being traiffc discipline but in terms of time spent in travel to work and fuel cost is no big difference. If somebody decide go back to any metros in India the initial settling process might be tough but over a period of time you get used to the weather and traffic conditions. If we compare the money spent for fuel and drivers salary then we should keep in mind that the average salary for IT professionals in India amounts to 50 – 70 K per month.

    Mahesh

Leave a Reply