At ICICIdirect our financial planners
have thousands of customers and
family members to articulate their
goals and plan for their life
goals.These range from planning
for their children's future to their
own retirement. But one goal that
is invariably high on the list of
priority is to buy a home. It is by far
one of the most sought after acquisition both in terms of the actual
investment made but also in terms of its significance in the mind of
investors.
A report by India Brand Equity Foundation on the urbanization of India
mirrors this sentiment. Real estate sector in India has been aiming to
reach 1 trillion US dollars by 2030 and contribute 13% of country's GDP
by 2025. This sector expects to reach 3.7 million square feet in 2019
and an addition of 200 million square feet during the year. The
infrastructure sector has become the biggest focus area of the
Government of India. Under Union Budget 2019-20, US$ 63.20 billion
was allocated to the sector. So housing and investment in the sector is
indeed an area of growth.
Buying a home entails one of the largest investments one makes in his
lifetime and as such it becomes very important to get it right. Taking a
cue from what we have seen our customers articulate and the queries
we otherwise receive, this issue of ICICIdirect Money Manager is
focused on helping you buy that home. It's best to start the process by
really evaluating the need to buy.
Taking a house on rent gives more flexibility and one should evaluate
renting with buying, especially if your job involves transfers. However,
given the inflation in land and cost of construction, it is advisable to buy
one house from a retirement planning perspective.
Vijay Chandok, MD & CEO,
ICICI Securities Ltd.