Homeownership top third priority for Indians, reveals BankBazaar study

financialexpress.com:

Indians love buying property as it gives them a sense of financial safety and security. It is also an asset they can rely in their tough times. A house essentially is bought for self-use, but some buy multiple pieces of property for rental income as well.

As per the BankBazaar Aspiration Index 2023, buying and having own house continues to be a key financial goal for many people in India. In fact, this is ranked third among the top 5 financial goals of Indians.

Mental health with 89.1 ranked as the most important and most chosen goal. Children’s education (88.9) continues to be a top priority in the top 2, so does home ownership at the third place with (88.2). The report studies salaried men and women between the ages of 22 and 45 across 17 goals under five broad aspirations: Health, Wealth, Fame, Relationship, and Personal Growth.

The report further highlights that high inflation and soaring costs of capital continue to hamper aspirations of Indians. For a significantly higher number of people, high cost of living is the biggest roadblock (48%) combined with limited savings (44%) and a tax regime not adjusted for inflation (30%). Coupled with the steep increase in the cost of credit, people are increasingly turning fiscally conservative this year.

Also Read: Why is it important to educate your children about money?

82% have seen high borrowing costs impact their aspirations. The percentage of people taking loans to build assets such as a house, vehicles, or even for higher education and home improvement has fallen by 2-3 percentage points. Nevertheless, optimism still persists as majority people (56%) choose to defer their aspirations over downsizing them or writing them off altogether.

Adhil Shetty, CEO, BankBazaar,