News

Visakhapatnam: Unlike their counterparts in the Vijayawada-Guntur region, flat buyers in the Port City are distraught as they are not only having to deal with stagnant rentals, but also having to pay out higher EMIs (equated monthly instalments) on home loans taken to purchase flats in the city. Flat owners depending on home loans for purchasing their dream homes lament that they are shelling out more than double the actual rental amounts prevailing in the city to pay their EMIs.

Explaining the situation, a flat buyer from PM Palem located about 14 km from the RTC Complex, Srinivasa Murthy (name changed) said, “I purchased a 1,000 sft flat for Rs 22.5 lakh. I had taken a home loan for Rs 16.5 lakh over a period of 20 years and my monthly EMI works out to around Rs 16,000. However, the rental in our area is around Rs 4,500-Rs 5,000. So, I’m paying triple the rent amount prevailing in the area for EMI.”

Furthermore, he said, “In fact, I am paying only Rs 5,500 for a two-bedroom house near Ravindranagar, which is much closer to the city. Due to the pressure from family members to own a house of our own, I took the decision to buy a flat and now I am wondering if it was a wise decision. The only solace is that I will have a flat of my own after 20 years.”

While Murthy’s case is that of a first time flat owner, even those who purchased their second flats as an investment are also wondering if it would have been better if they had bought plots instead, for which the prices have been steadily increasing.

“We purchased our second flat thinking that we would get good rentals as Vizag is the largest city and we will witness a huge growth here due to the growth of IT sector and other industries. But now, I am paying Rs 8,000 more than the rent that I am getting at Madhurawada,” observed Ramachandra Rao, a central government employee.