Tag: Chennai

Low Budget Flats in Chennai is a reality or hypothesis or fact? Definitely, it is an expectation from many middle class or moderate income people.

But low budget flats in Chennai corporation limit is not possible as on date due to the land prices. Price of flat is decided by the prices of plot where it is constructed. Square feet price of land directly affects the price of flat(SQ.FT).

Flats Less than 30 lakhs is not possible within Chennai corporation limit.

There are low budget flats available at the outskirts of Chennai. They are psychologically brought into the boundary of Chennai. But practically they are NOT Chennai.

If you are aware of about the boundary of Chennai corporation limit, you will be shocked to know that the low budget flats are sold actually in other districts, which are sharing the border with Chennai district. They are called Integrated Townships or satellite towns revolving around Chennai.

Low budget flats are available in the Integrated townships sprouting around the border of Chennai, not inside Chennai corporation limit.

Who can buy a house in Chennai?

Buying a house in Chennai is beyond the scope of middle income group people without housing loans. No two bed room flats or a house around 1200 SQFT is available for less than 25 lakhs. This is regarding apartment. Independent house can not be bought by middle class people even with bank loan.

Moreover, the NRIs from chennai has more opportunity(money) to buy a house in chennai with bank loan than Middle class people living and working in Chennai.

If you look around your known circle, the software professionals working/worked in abroad booked apartments more than non-software professionals.

The land value of within the city is beyond the life time income for middle class chennai population.

ECR or OMR areas are for NRIs and proprietors who employed and providing provisions to middle class people.

Well, where can the chennai middle class people ‘settle down’ in their own house?

About 30 to 40 kilo meter away from chennai city(sub urban bushes), chennai’s middle class population can buy a house. In Urappakkam, Kooduvancherry, by all the GST road from chennai to trichy has little scope for chennai middle income group to buy their house.

Chennai is growing. You can buy a old house or around Chengulpet and say you have owned a ‘house in chennai’. Chennai will swallow the areas till Chengulpet, Kanchipuram, and Pondicherray. Chennai is extending in all the direction (except in the east) by swallowing the near by villages, municipal towns etc.

Kunrathur was a separate entity from chennai, is now part of Chennai.

The Chennai city is expanding like universe.

In spite of all the financial hurdles, is it worth buying a house in Chennai? You have to pay the house loan EMI for the rest your life if you are a middle income man.

Is it worthy of buying a house in chennai? Along with the price, the quality or quantity should increase. Is it happening in rocketing realty price hike? If you have already bought a house in chennai, you may read it why you may dispose it.

The chennai city is growing in size and population.

Is the water reserve proportionally increased? Is water distributed equally to all citizens of Chennai? Are the road quality and road capacity to handle exploding traffic get increased? Are the police stations and police men are increased proportionately with increasing population and land. Is the public transport enhanced to meet out the commuting of ever exploding Chennai?

Are Government Hospitals, schools, colleges increased along with physical area and population? Are there enough public toilets and parks? Does Chennai have a drainage system with the capacity to dispose sewage from its dwellers?

If ‘NO’ is the answer for all the above questions, this city is growing unevenly. No proportionate growth in all the aspects. It seems to be both crowded and congested. A concrete jungle than a well planned and organised city.

If you are living in Chennai with your family, you may need to travel from 4 to 5 hours per to day to shuttle between your house and office. You find it difficult to reserve travel ticket to go to your native place. You find it difficult to go to a movie without reservation in weekends.

You vacate your house in raining season because your house is inundated.

You find it difficult to park your two wheeler or four wheeler in your house premise or your house may not have premise. You have to park your vehicle in street.

You have to wait in a ‘Q’ for everything and anything in public places.

Your family women have to carefully walk in the street to avoid men like barbarians who are intoxicated by alcohol.

You children are trained to be professional corporate slave if they study in English medium private schools. After finishing college, they are only eligible to be a corporate slave than a free man.

Just think whether you are going to buy a house in Chennai which is a man made concrete jungle or in a human habitable city. Chennai seems to be Concrete Jungle growing aggressively than a city worthy of living. For middle class man it is a city for working than living.

Chennai or any metro city is a cluster of loosely coupled industrial units than a City.

Soon the people living outside of Chennai will shuttle to their offices from 40 to 50 km away from chennai. Finish their work and go home in the late night or midnight.

Chennai house rent and sale price is hiked from 50% to 100% in the last 10 years. (2004 to 2014) Especially in south madras (Chennai).

India holding the largest middle class population in the world. But its metro cities seem to be not suitable for middle class dwelling. Cost of living in metro cities especially like IT hubs like Bangalore, Hyderabad, and Chennai are going beyond the purchasing power of middle class people. Chennai is slowly pushing the middle class people to out skirts of Chennai. You may be eliminated from Chennai anytime.

In western countries, particularly in American metros, more than 50% of the earning should go towards house rent. Now Chennai is racing with American cities in hiking house rent. Ultimately and as usual middle class people is going to suffer like any thing. They have to seek house in out of Chennai. Either low class or high class alone is going to live in Chennai.

Why this hike? Is there any way things will revert back to normal? After discussing with friends, Real Estate brokers, House owners, and investment consultants I like to figure out few issues.

First I would like to discuss about Housing Loans. Housing loans are thriving to professional especially to IT and medical professionals. Huge loan amount with 40% to 60% of the salary as to EMI for two decades is one of the reasons for hike in house selling price and house rent. If you purchase a house and paying EMI as 60% out of your salary then you will definitely increase your rent to meet out your EMI. EMI is an ‘indirect tax’ you pay to financial institution. Many people avail housing loan because; EMI is tax detectable source (TDS). When Government change EMI paid for housing loan like it is not a Tax Detectable Source (TDS), then house price and rent will be increased further.

Next is IT Boom and outsourcing success. Western and European money (currency) coming to India through software outsourcing. Most of the companies sky scrapping salary to its employees. They have more purchasing power than others. Because of this sectors House rent and price are increased. Moreover, 70% of IT employees are youngsters and not married. They do not have big family commitments. They form a group of 4 to 5, occupy a house and share the rent. Their monthly total income of the group will reach 2 to 3 lakhs(INR). For them rent is not a big issue. Since they are going to share rent, which is not an issue what ever it may be. This group’s paying power is more than a single man earning family. Single man earning family can not afford or what group of bachelors can afford. House owners are increasing the rent because of this high earning cum low committed group of bachelors. These bachelors will suffer by the house rent when they raise their independent family.

These IT boom and housing loan are main reasons for sky scrapping house rent. Soon Chennai may be a city of high earning youngsters (bachelors).

What about single man or couple earning families, especially those who are working in other than IT and medical sectors.

Government is not interfering into Rental boom like in English medium schools and college fee boom. Many house owners are not giving proper bill or receipt for the rent. At least Government should enforce the house owners to pay proper tax for the sky scrapping rental they demand.

Western currency especially American dollar coming to India through IT out sourcing is ultimately and indirectly going to financial institutions both Government and Private, and House owners of Indian metros and Real Estate industry. They will be prospering in the next decades more than other sector people.

Is there any way to bring back to normal or middle class comfort or at least stop it where it is now? Government should introduce a Rent ceiling act to regulate rent. It should collect the tax against the rent originally received.

If nothing happening to stop the sky scrapping rentals, then middle class will suffer like anything. Man kills another man. Civilization kills another civilization. Religion kills another religion. Caste kills another caste. Race kills another race. Now class kills another class: High class will kill middle class. There will be no class barrier after getting rid of other classes and keeping only one alive.

If you belong to middle class or middle income group, you may be eliminated from Chennai or Indian metro cities any time. Even the sky scrapping software salary is smaller than sky scrapping rentals.

Men from India leave their families in their villages or rural head quarters and go to Gulf countries and East Asian countries for earnings. Like that, Men have to come to Chennai or metro cities for earnings without their families.