CA’s Take On Escalating Housing Costs Fails To Impress Internet

The monetary worth of a house or other property is referred to as house prices, home values, or property values. Interest rates, inflation, population growth, and the status of the economy are some of the variables that might impact the cost of homes and apartments. But what has been the recent course of this trend? Chartered accountant (CA) P V Subramanyam has discussed the evolution of house purchasing throughout the years.

On the microblogging platform X (formerly known as Twitter), he discussed the mortgages taken out by three generations: 1966, 1981 and 2023. In addition, he disclosed the income of persons who obtained these house loans.

“My father took a huge loan of Rs 28000 to buy a house in 1966. I took a huge loan of Rs 2,50,000 in 1981 to buy a house,” wrote Subramanyam on X.

He further said that in 2023, his nephew obtained a Rs 2.6 crore home loan in order to purchase a property.

He included his own salary, his father’s salary, and his nephew’s salary as points of reference in the following few lines. “Salaries were Rs 48000 for my dad, Rs 200,000 for me and Rs 1.24 crores for my nephew.”

Since being shared, the post racked up 651,100 views on the social media platform at the time of reporting. The post provoked fierce debate in the comments section. Some commented on his post, stating that they had made similar purchases, while others questioned why someone with his level of income would need to obtain a loan to purchase a house.

A user wrote, “To have 48k in 1966 = 39,50,000 in today’s income. Your dad was above middle class. And for you to have a monthly salary of 2 lakhs in 1981 = 59,23,000 today. You, my friend, were from an upper-middle-class family. Assuming a rupee inflation rate of 7.37% from 1966.”

Another user said, “How was it a huge loan (comparatively) for your dad? His loan amount was <60% of his annual income. For reference, yours was 125% and your nephew’s is 210%!”

Yet another user went on to say, “Very well said .. our family went through similar purchases.”

Nonetheless, the prevailing opinion in the comments section was that, even in ordinary circumstances, someone with extraordinary wealth at the time might have purchased homes in upscale neighbourhoods.