Need some financial advice for buying house. I am 28 years old( Unmarried). I earn 20 LPA. I have cumulative of 5 Lakh in Safer assets (FD, Debt Funds) & 5 lakh in Equity & Mutual funds. How much should I save more? & for how long should I save ? Where can I park this amount? If I want to purchase 1 Cr house. All ur feedback will help me a lot. If you can share some your experiences that will be overwhelming
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save more? bro, to be very honest forget these investments first and start saving from scratch, let them be there for any contingency.
now for 1cr flat, you will need 20L downpayment rest would be financed (given that you have eligibility for 80L debt).
it is up to you how you save this 20L, avoid MF/equity for this, RD is a better option.
PS: if it not utmost necessary or has emotional connect behind it, don't buy a flat just for social status.
PPS: your emi for 90L loan (80 flat + 10 interiors) would be ~81k for 20 yrs tenure at 9% ROI, keep this in mind too.
I completely agree with you. To buy a home worth 1Cr, you will need min 20L down payment & stamp duty. 20LPA looks a decent package but when it comes to buying a 1Cr flat, it takes out the major chunk of your monthly salary which affects you in every possible pay.
I’ll tell you my story.
I booked a 2bhk in Jan 2018 in Pune. Total cost 62L. It was completely because of my Dad forcing me to buy.
My ctc was 6LPA in 2018. My dad paid the stamp duty & initial installment of 5L.
Since it was newly launched project, Payment structure was scheduled over a duration of 3 years. Since, we had agricultural income as well, we paid around 36L to builder through self contribution within 2 years. In Dec’2020, I switched my company with a ctc of 13LPA. That’s when I took a home loan of 20L on my name.
Currently, My ctc is 19LPA + wife’s ctc is 5LPA with a home loan outstanding amount is 12L.
Currently, builder has launched the last tower in our society where builder is quoting 78-82L for 2bhk.
Thanks for reading!
If you are planning to buy a ready to move in property, then you need atleast 30% amount, 20 as downpayment and rest 10 as Interior and Registry.
80% you can take loan.
If its a launch price/in construction unit, then you can book it with 5-10 lacs as downpayment and rest will increase as construction goes on. In this case you will get time of atleast 2-3 years to accumulate remaining 10-20 lacs.
Advice: if you are buying of self use and saving rent then go for it! parallel try for promotion or switch!
Just a thought: You can begin with investing in ‘collector sanctioned NA plots’ in gated communities. 1 or 2 gunta will probably cost you 25-30L/guntha for a good investment purpose. This will give you better return with less headache.
Based on your savings n investments, I believe you should not opt for a 1 cr flat.
And anyways plots will surely give you more returns than a flat. You can buy flat 2-3 years later. Probably after marriage, as we go far in our careers, we better realise where/why we should stay along with cumulative choices of our better half in our fast paced lives.
Can I ask which city you are considering for investment??
Be cautious my friend if going for a flat in Bangalore. I have seen friends in Bangalore waiting n waiting n waiting for possession of their booked flat.
Living a debt ridden life for too long, life getting tough with each passing day.
+1