Home Buying Plan
I currently have ₹20 lakh in my account. I don’t own a home — neither in my hometown nor in Pune. Even my parents also live at rented home. I’m planning to buy a home in Pune. My annual salary is ₹21 lakh.
I’m considering purchasing a property worth ₹1 crore, with an ₹80 lakh home loan. The expected EMI will be around ₹65,000 per month. I plan to buy an under-construction property.
During the initial phase (for the first 3 years), I’ll pay an additional ₹6 -8 lakh per year in principal amount , which will help reduce the EMI to around ₹40,000 after possession — roughly equal to the rent I currently pay.
During the initial phase (for the first 3 years), I’ll pay an additional ₹6 -8 lakh per year in principal amount , which will help reduce the EMI to around ₹40,000 after possession — roughly equal to the rent I currently pay.
This is my plan — please let me know if it seems feasible.
In the middle of all this you'll get married, have a medical emergency, being in an IT services company face poor var pay or worse.
Remember what can go wrong, will go wrong.
Please relook your finances and plan. Save upto 75% of the home cost. Then put in a 20%downpayment, emi, etc
It doesn't look realistic. But the thought is good You might only be able to pay 3-4L per year additional. Also, under construction deadline can increase anytime. Do consider that
Thanks for your response. But I don’t own a house, and neither do my parents. That’s why I’ve been thinking it’s the right time to buy one. I’m still unsure whether to purchase a home in my hometown or in Pune. I’m married and have a 2-year-old child, and I feel that if I don’t buy a home now, it might become even harder in the future as property prices continue to rise.Currently, I’m paying ₹27,000 in rent, not ₹40,000. However, I’ve factored in the expected increase in rent over the next 3–4 years while planning.
In Pune paying 40k per month as rent 🙄 That's too huge.
Where are you staying bro?
Also, coming to the actual question - I just have a home loan of 25 lakhs and EMI of 30k (trying to close loan in a shorter span) but still I feel bad or stuck as even good builders delay by 6-8 months easily nowadays in giving possession which creates extra burden as Rent for those 6-8 months.
I also planned to pay 6-8 lakh additional amount per year to close the 25 lakhs loan in max 4 years... But it looks very difficult. You have so many unnecessary and unknown expenses after you get married. A simple water filter servicing a year cost 8k minimum for example. Rent increase by 3k every year.
Worst is the tax part. It will just increase every year without any benefits to tax payer.
So I would recommend - not going above 80 lakh while purchasing a house. (Not more than 60 lakhs loan)
Bhai ruk ja ... Mt kr... Ask your elder one...
