Since the day of yore, a home has been the most cherished dream and prized possession for all Indians, irrespective of their caste or creed. In fact, when the Manoj Kumar starrer ‘Roti, Kapda or Makaan’ hit the silver-screen, it brought Maslow’s Hierarchy Level into sharp focus as the movie itself talked about a man’s physiological need or basic need, which was incomplete without a roof over his head.
Thus, in order to fulfil his most basic of needs, a man did whatever he could do to create a home for himself. Of course, in the earlier days, it was not too difficult since most families followed the joint family system with one home sufficing for 3 or 4 (or even more) nuclear families. But with the decline of the joint family concept and more and more nuclear families mushrooming in the market, the demand for houses went through the roof and so did their prices. The market, after all, is governed by the simple logic of demand and supply.
Thus, with greater demand for housing, property rates too saw a steep rise, which made owning a house a distant dream for many. This was especially grave since saving rates had also stopped being as lucrative as before; thanks to the decline in interest rates on saving accounts. This, of course, created the perfect market conditions for banks and financial institutions to jump in to fill this growing need and that laid the genesis for housing finance.
In other words, it was the decline of the Joint Family System that actually created a new market for the banks to introduce their myriad products — the ‘Housing Finance’ schemes. Of course, since the government was not equipped to cater to this large market, despite its many initiatives since the First Five Year Plan, the job was always going to the private sector.
Of course, the situation is going to only get better for the banks. With the largest chunk of India’s population being young, who wish for an independent lifestyle along with their better halves, the demand for housing will steadily increase. Of course, improving economic conditions and employment availability has too played a key role, alongside the growth of nuclear families, in creating a spurt of demand for housing.
Of course, with the government’s plan to create housing for all, things are looking up for the youth of India. Of course, if housing finance is not your cup of tea and you do not fancy paying exorbitant rents or EMIs, it is time to go back to your roots and stay in an Undivided Joint Family. That, of course, will be both cheaper and better…for both you, your family and the entire economy!
