Emotions led Mumbai-based Sharon Alwyn Sequeira, now 44, to purchase a Rs.22 lakh house in 2008. His wife was about to have their first child. A house to call their own felt right at the time. He took a home loan, locking him into equated monthly instalments (EMI) of Rs.19,000—not a paltry sum, considering his then-monthly salary of Rs.25,000. Little did he know how the home loan would push him to years of uncomfortable choices.Initial years were spent living paycheck to paycheck. They borrowed from close family to tide over shortfalls. A top-up loan followed, pushing up EMI outgo to Rs.30,000. To afford their lifestyle, Sequeira began putting in the grind at work—constantly pushing himself in pursuit of bonuses, increments and promotions. Regular night shifts took away precious moments with the family.Home affordability has steadily improved, says the mathWhile average housing affordability, measured by the price-to-income ratio, has improved across cities, these calculations overlook the hidden lifestyle, career and family trade-offs of a home loan.
Source: Colliers India. Note: Average housing prices are calculated basis the composite carpet prices for 50 cities in India and assumed for a 1,000 sq ft unit | Average income is per-capita disposable income per annum.
