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How I bought my first house

September 21, 2007
R Sriram, Deputy Aircraft Engineer in Air India, bought his first home at 38. Though, he could have bought it much earlier in his mid 20s or early 30s, he waited till he got the home of his choice.

Finally, after a long wait he bought a two-bed, studio apartment in Kalina, Santacruz, a suburb in Mumbai, very close to the domestic and international airport (the main reason why he waited so long).

He took an Rs 20 lakh loan from the public sector Corporation Bank on a floating rate of interest for 20 years. He is planning to prepay this loan amount very soon and buy a new holiday home.

"India is shining now. If you are 25-30 years of age and planning to buy a new home then don't think too much," he says. This is the right time to buy a new home because it is likely to appreciate much more in value in the next 2-3 years.

"The home that I bought for Rs 35 lakhs only 18 months back can now fetch me a cool Rs one crore if I were to sell it today," he beams.

Here, Sriram talks about how he bought this house and gives tips to the young on what they should keep in mind before buying their first home. He talks about the home loan EMIs, why you should opt for a floating rate interest, how important a role location plays for you to select a good home. Over to Sriram.

Text and photos: Prasanna D Zore
Also read: Tips on how to purchase a used car


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