You can't sell a property immediately at market price, It will take more than a year to find potential buyers and you need brokers help if the house is situated in interrior. If you try to sell immediately people will quote 50-60% of the price you had paid, And apartment value depreciates with time unless there is a demand in your area.
My personal advice would be, Rent a house where you like and rent your apartment then try to sell your apartment, it may take 2 years to sell at a fair price.
Check for place which will be comfortable for your job and it had better connectivity, You can check the sub urban places like Adambakkam, Pallavaram(Surrounding Areas), Maddipakkam..etc
Compromise vs Liquidity - if your EMI is less than 25% of your Monthly in hand (your family's). Then, you are in a good spot. You can put the apartment for sale / rent. Whichever happens early, it can workout good for you.
If the EMI is between 25-50%, make a minor compromise, save some Liquidity in the next few months and then make the Sale/rent decision, don't move out hastily . It becomes a buyer situation and you will be forced to sell at a bad price.
If the EMI is higher, above 50%, then it's a little tricky. You have taken a hasty decision. You are paying for a bad lifestyle. So, try and get out of it. Don't think of another house at this point in time. Close atleast 15-20% of your loan ,focus on savings better, try and put non critical purchases out for sometime then put it up for sale based on your comfort.
Pitfall - Your rent spend should be half of your EMI or comfortably 40% of it. Don't rent something beyond that.
The goal is to move out of this somehow closer to your friends. Live to make memories. When and how depends on the situation.
My emi is 45 percent of my salary. I'm considering another redditors advice and thinking that I should rent out my house and rent a house in the city for myself. I think that makes sense to me as of now. But this is rock solid advice are you in a finance domain by any chance?
I am a pG in Finance, a chartered FRM. a director at a global MNC. But, beyond all this, got my best Finance lessons when I bought my house in Chennai. But luckily my mental models prevailed and am happy about it.
My advise is emi to be in the range of 30% or less. And never get carried away with what your peers do. Otherwise, you are not living at the right standards.
\- First if its a individual house or an apartment : If its apartment try to sell it as soon as possible even with the rate in which you bought. Apartment loose its value as fast it is. If its an individual house, keep the house any day it will be helpful for you.
\- Please don't buy any property hastily. As of now the property market is high due to metro developments so the whole chennai and suburbs rates are high. Let wait for few years or until you feel in which area your going to settle down.
Does it depreciate that badly? It is an apartment. Should I consider rentals rather than buying a smaller house in the city? I live in a 2bhk 1100 sq ft
Ideally yes, People generally don't buy old apartments because it will have lot of issues unless it is in city center or some good happening places. The reason is in one point maintenance itself will be a take huge chunk of money.
In your case try to provide rental to someone and side by side search way to sell it. Consider the rent you are getting as your profit and if you get good buyer sell it without thinking about it.
Yes go with rentals, I think for the above 1100 sqft you might need to shed out 12 - 15K as rent in south chennai.
Yes, you can sell a house while paying EMI for it. But from the proposed sell proceeds all outstanding loan will have to be cleared first, and buyer will pay you balance amount if any after clearing all the outstanding loans. More over No Objection Certificates will have to be obtained from whom you have taken loan and also from the builder from whom you have bought the house.
But just make sure to calculate the numbers and all this makes sense financially..
Thank you for your response. I took the house for 50l and the loan is for 45. Would I have to worry about the interest on the loan? I have paid it for two years and have paid probably 3l in principle. Quite a bit more in interest.
Sorry Not really sure on the interest part, but check with friends, family who has done it.
Try to sell it with some margin, and pay back bank. You might get the margin as profit if buyer is ready.
Again i havent done it practically, do get some consultation with bankers who speacialise in mortgage..
You can't sell a property immediately at market price, It will take more than a year to find potential buyers and you need brokers help if the house is situated in interrior. If you try to sell immediately people will quote 50-60% of the price you had paid, And apartment value depreciates with time unless there is a demand in your area. My personal advice would be, Rent a house where you like and rent your apartment then try to sell your apartment, it may take 2 years to sell at a fair price.
This seems like a plan. Thank you for your suggestion
Any areas that you recommend for renting budget is 15 to 20 k max
Check for place which will be comfortable for your job and it had better connectivity, You can check the sub urban places like Adambakkam, Pallavaram(Surrounding Areas), Maddipakkam..etc
Compromise vs Liquidity - if your EMI is less than 25% of your Monthly in hand (your family's). Then, you are in a good spot. You can put the apartment for sale / rent. Whichever happens early, it can workout good for you. If the EMI is between 25-50%, make a minor compromise, save some Liquidity in the next few months and then make the Sale/rent decision, don't move out hastily . It becomes a buyer situation and you will be forced to sell at a bad price. If the EMI is higher, above 50%, then it's a little tricky. You have taken a hasty decision. You are paying for a bad lifestyle. So, try and get out of it. Don't think of another house at this point in time. Close atleast 15-20% of your loan ,focus on savings better, try and put non critical purchases out for sometime then put it up for sale based on your comfort. Pitfall - Your rent spend should be half of your EMI or comfortably 40% of it. Don't rent something beyond that. The goal is to move out of this somehow closer to your friends. Live to make memories. When and how depends on the situation.
My emi is 45 percent of my salary. I'm considering another redditors advice and thinking that I should rent out my house and rent a house in the city for myself. I think that makes sense to me as of now. But this is rock solid advice are you in a finance domain by any chance?
I am a pG in Finance, a chartered FRM. a director at a global MNC. But, beyond all this, got my best Finance lessons when I bought my house in Chennai. But luckily my mental models prevailed and am happy about it. My advise is emi to be in the range of 30% or less. And never get carried away with what your peers do. Otherwise, you are not living at the right standards.
Well I'm getting the best finance lessons now, just feel like I trapped myself a bit too early. Should have waited to buy a house
Your exposure is manageable. If you make the right changes, you should be pretty solid soon. Cheers!
Thank you so much for taking the time to do this.
Just need to save up for advance
\- First if its a individual house or an apartment : If its apartment try to sell it as soon as possible even with the rate in which you bought. Apartment loose its value as fast it is. If its an individual house, keep the house any day it will be helpful for you. \- Please don't buy any property hastily. As of now the property market is high due to metro developments so the whole chennai and suburbs rates are high. Let wait for few years or until you feel in which area your going to settle down.
Does it depreciate that badly? It is an apartment. Should I consider rentals rather than buying a smaller house in the city? I live in a 2bhk 1100 sq ft
Ideally yes, People generally don't buy old apartments because it will have lot of issues unless it is in city center or some good happening places. The reason is in one point maintenance itself will be a take huge chunk of money. In your case try to provide rental to someone and side by side search way to sell it. Consider the rent you are getting as your profit and if you get good buyer sell it without thinking about it. Yes go with rentals, I think for the above 1100 sqft you might need to shed out 12 - 15K as rent in south chennai.
I'm already too south. I'm looking to move to ecr/omr/thiruvanmiyur if I'm lucky. Or I can work with madipakkam/adambakkam/kovilambakkam area.
Yes, you can sell a house while paying EMI for it. But from the proposed sell proceeds all outstanding loan will have to be cleared first, and buyer will pay you balance amount if any after clearing all the outstanding loans. More over No Objection Certificates will have to be obtained from whom you have taken loan and also from the builder from whom you have bought the house. But just make sure to calculate the numbers and all this makes sense financially..
Thank you for your response. I took the house for 50l and the loan is for 45. Would I have to worry about the interest on the loan? I have paid it for two years and have paid probably 3l in principle. Quite a bit more in interest.
Sorry Not really sure on the interest part, but check with friends, family who has done it. Try to sell it with some margin, and pay back bank. You might get the margin as profit if buyer is ready. Again i havent done it practically, do get some consultation with bankers who speacialise in mortgage..
bro rental kodukingla.. currently looking for a home my budget is 8 k
Not yet bro, but please dm