Family ties drive home realty world

New Delhi:Notwithstanding the hue and cry in the realty world that it has
been facing rather tough time due to several factors, including high costs
of flats, ever-increasing bank home loan interest rates, steep hike in the
prices of cement and steel, all is not lost. Despite such a bleak overall
scenario, realty players are launching new ambitious projects and serious
buyers are buying roof on their heads.

“Family plays a vital part in most of the real estate decisions in India,
especially if the house is purchased by an end user rather than an
investor,” Samir Jasuja, Founder and Chief Financial Officer at PropEquity,
adding, “Several times home loan borrowers take home loans where
installments are a substantial part of his salary. But borrower’s family
members pitch in to provide the financial support to him if there are any
financial setbacks.”

Young banker Aarush Gulati says that he was almost lost all hopes to have
his house in either capital or NCR as whenever he used to finalize any
flat for buying purpose, he found it beyond his budget. “ I always found
myself short of Rs 4-5 lakhs. It was a big amount for me as I have started
by career not long ago. When my parents came to know about my ordeal, they
at helped me with required some with an assurance that I do not have to
return the money,” Gulati told us, who purchased a 2BHK flat
in Indirapuram early last year.

Is family the real engine or driving force of realty market ? “ I have
observed that very strong family ties play pivotal role in giving oxygen to
the realty sector rather unconsciously. While there is no denying the fact
that the cost of residential apartments are getting more and more,still if
people are buying them it is also due to strong family bonding,” adding,
says Gaurav Mittal,Managing Director of CHD developers, adding “ I know for
sure that when a family member decides to buy his/her house, he gets
support from his/her parents, siblings and other close relatives. They give
financial support without any ‘ interest’ and at times without any
expectation of return of their money.”

In a rare confessional mood, a South Delhi based property consultant said
that once he was about to sell one ground floor flat in Green Park
extension but for the advise of an elder brother of a guy who was keen to
buy a flat through him. He recalls that before giving the earnest money to
the owner of that property, his client took his brother to that place.
After spending some time inside and outside the house, the guy told his
brother that you can not buy this flat as it is just opposite Green Park
cremation ground. And while he was right, he canceled this very fact from
his client.

Agrees Alimuddin Rafi Ahmed,Managing Director of ILD group, “ You would
not find even one per cent people who takes the final call when they buy
their property. We have been observing more often than not before sealing
the deal,the would be owner of house see to it that his close family
members also see his/her costliest purchase of his/her life.” He adds that
when they (close relatives) visit the possible new home of their very
own,they give him/her some suggestions. If the house is not east facing,
the would be buyer is likely to be told by his r own that ‘you would not
get enough sun light’. They also told many other things which they have
learnt with their experience.

Sharing his thoughts on ‘family matters’ in real-estate
world, Sunil Jindal,CEO of SVP Developers, says that we may say that the
family ties are breaking in our society,fact of the matter is that they
look rather strong in the context of realty world. “ I can tell you with my
own experience that as large number of youngsters from Bihar,
Eastern Uttar Pradesh and Orissa and Bengal are buying flats in places
like Ghaziabad and Noida,they get good ‘amount’ of support from their
family. But for that, you can not expect that a guy with not a very long
career can buy flat with his resources. He gets help from his family.”

Says Gaurav Mittal, “ As I have residential projects in non-metro towns as
well as outside the notional wall of NCR, I can tell you that a final
decision on buying the property only take place when not one or two,but
when there is a consensus among several family members. The house is
considered as a family property, not an individual thing. Perhaps that is
way the views of many matter and they too contribute, if they are asked
for,for the cause of family.”

“In many cases, parents also provide down payment or part of it to book the
flat on behalf of their children, which helps in keeping the demand for
housing alive even during recessionary period,” Jasuja Concludes.