My father retired in 2008 from a PSU in Hyderabad. The corporate will not be a part of any govt pension scheme, so all he had was a 30L from his EPF, financial savings of about 15L, and sale proceeds of 40L from his home in Hyderabad. It was an impartial home, and he felt he and my mom didn’t want such an enormous home, so that they moved to a rented home, paying 8K as lease in 2008 and determined to take a position the 85L and stay on its curiosity. At the moment, they had been getting about 7L per 12 months and their month-to-month expense, together with the lease, had been about 35K. Every little thing was excellent, they usually had been comfortable.
Till 2020, I had taken a mediclaim from a non-public insurance coverage firm. I used to be paying a premium of 9K for a canopy of 2L (floater). In 2020, they hiked it to 45K for a 3L cowl (saying they don’t provide the 2L choice any extra) after which in 2021, they hiked it to 85K for a 3L cowl, regardless of NO claims for the final 12 years. Porting was not an choice as different firms charged exorbitantly, and no firm supplied recent mediclaim to a 72-year-old man. I had no choice however to surrender paying mediclaim premium, as paying 85K for a 3L cowl didn’t make sense.
Quick ahead to 2022. My father had a stroke. My dad and mom may not stay individually, so that they needed to transfer to a flat in my constructing (my flat is simply too small for my household and theirs). The lease in my constructing was 35K in comparison with 15K of their earlier flat.
There have been a number of cases after I had advised my dad and mom to purchase a flat in my constructing and save lease, however they wished to stay with out their very own home, saying they would favor to take a position the cash and get returns. My father invested about 8K out of the 85 L he had whereas retiring in fairness, and his corpus is now 1Cr in 2025, regardless of withdrawing cash for the final 17 years—that means, they’ve carried out properly. However now, with a 38K lease and different bills, together with drugs, meals, maid, and many others, my dad and mom are incurring an expenditure of about 70K per 30 days.
The home proprietor is growing the lease at 8% yearly, which is exorbitant, however we now have no choice as a result of they’ll’t stay distant, I can’t transfer to some distant location the place the lease is much less, as my husband works right here, and that is our personal home. That means, they’re caught. The owner is aware of this and is holding us to ransom by growing the lease yearly. My mom has strolling points and wishes assist with every thing. My father has his proper aspect weakened after the stroke, so them aren’t that cellular. I’ve to maintain them in a flat in my constructing alone. Shopping for will not be an choice as costs are over the roof, and even my father’s whole corpus gained’t be sufficient to purchase a home right here now.
I might NEVER suggest not shopping for a home to anybody until they’re younger, wholesome, and free to maneuver at any time when they’ve a foul landlord. If in case you have your individual home, you’ve gotten a protected roof over your head and don’t should stay on the mercy of another person. Having your individual home avoids stress.
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Dr M. Pattabiraman(PhD) is the founder, managing editor and first writer of freefincal. He’s an affiliate professor on the Indian Institute of Know-how, Madras. He has over ten years of expertise publishing information evaluation, analysis and monetary product growth. Join with him through Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You may be wealthy too with goal-based investing (CNBC TV18) for DIY buyers. (2) Gamechanger for younger earners. (3) Chinchu Will get a Superpower! for youths. He has additionally written seven different free e-books on numerous cash administration subjects. He’s a patron and co-founder of “Charge-only India,” an organisation selling unbiased, commission-free funding recommendation.
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