It’s great time to be a NRI (Non-resident of India) if you invest money in the country or perhaps repatriate your cash back home in India. The rupee has fallen drastically against the US Dollar generously bestowing you more bang for the bucks. The same dollar which fetched Rs. 44 in August 2011 now after exactly 2 years is fetching Rs. 68, a gain of Rs. 24. Whoa!
One of my rich neighbors seems already to be on cloud nine about the falling Rupee – Credits to her husband who works in one of the European country and son who is earning handsomely in the United States of America. With so much money the rich lady plans to park the money in real estate. But not everyone like her is so rich and certainly not the average Indian. For instance, my other neighbor is drastically opposite unlike the rich lady. Living in a rented home from past 8 years, he some-how manages to live in metro and send the income back for his family’s expense and children’s education. For long he is aiming to buy a house. However, in the current economy for him, buying a house almost seems to be a distant dream.
Let’s consider my neighbor as aam –aadmi, the average Indian who is in a very tight spot now with the falling rupee. Even when everything seems to be falling and crashing down, he cannot purchase a home he can call his own. The reason, well the real estate market is always in a huge demand. At normal times, people invest here and in crisis situation like now, the NRI’s come in flock to grab this auspicious time to invest more.
We have witnessed almost every sector rising and falling. However, one sector that is aloof of any lows is the realty sector. Regardless of what the market situation is, it always seems to be escalating in India. No wonder, the greedy and unscrupulous realtors are always ready to rip off the credulous buyers who either put their lifelong earnings or risk their future earnings in house. However, going by the current trend, buying a flat or constructing a house on a purchased land is a dream gone askew. The procurement of an apartment or a flat that appeared somewhat a good option is also hard-hitting at this moment with the declining rupee and rising EMI.
Besides, rupee brings very little food. For 1 kg of onion you now have to shell almost a dollar forget about going out to restaurants and hotels for eating, that will no doubt bring a hole inside your wallet. Medical bills are no more affordable but a huge drain for any average household who are fleeced by specialists and 5 star hospitals. And for all those aam – aadmiwho dreamt of getting their children in fancy schools and institutions are ought to settle with an ordinary one because tuitions and coaching fees, now almost inseparable part of a child’s education also need to be arranged and managed.
At this rate, it seems that my rich aunty will probably get even more rich – buying home, giving it on rent and then who knows after 5 years the cost of the flat would be double. However, my other neighbor, the aam-aadmi is ought to suffer – the rent will speed up so will other expenses without any guarantee with an increase in income at that speed. Eventually, making the rich-richer and the poor-poorer.