Is house loan better early in your career?
I am 26M living in a nuclear family. I have 4yoe and 21fix (1.5l in hand) salary. I have been living in rented house since my whole life so there’s whole lot of emotional sentiment around this but I want to take a rational decision. I want to buy a house. It costs around 70-75lac including construction, registry and all other costs. Can i afford this? If not, what should be my budget? How should i plan? Anyone who was in similar position, what did you do?
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Less Risk Method.
Atleast savings of 30L in cash.
Take a loan for both plot and construction together. Pay 10% as down payment.
And then start .
30L savings because you shouldnt have EMI Pressure atleast upto 1.5 Years.
If the EMI is around 60K . Then atleast 15L should be in liquid cash reserve so as to pay for EMI for 2 years without pressure.
In Rest 15L use 7.5L for down payment and rest are emergency funds.
Most logical answer
No bank pays loan for plot,banks only pay for construction purposes or ready to move homes or apaetments.
It is good to invest, in case it is with land and not flat
Yes, it’s an independent
Flat is not a bad idea, if you are living in any metro city and want to buy a land there will be more changes of fruad happen with you. Again if you build your home there, you feel measure security issue, again you child will grow then feel no friend out there lots of thing I can say instead of land and own build better to buy best flat in best society. You will definitely see lots of improvement yourself once you leave live with better people to your arround. Buy land and everything this kind of interment fine only near to our home town.
Lelo bhai, first house is very big event emotionally. You will make many memories in your first house. SIPs and all can wait but do this and you will not regret. Good luck!
But home loan is a very big commitment too right?
21 and 1.5 in hand? Oh wow that's nice bro!
26*
Is this some land + home? Or a flat?
Independent house
What's your net worth? Current expenses.
Generally speaking seems too early for you. You need to have an emergency fund, a sizeable corpus of savings, so that even if the job is impacted you don't end up under EMI pressure.
My expenses are covered in 50k, i have the 3-6months of emergency fund
First purchase land and make it free from loan then save some money like all paper work and initial pay for contractor labour and go for start construction then meanwhile saving is utilising in construction apply loan and like last 30-40% payment and convert same into EMI
I built my home in Bangalore at the age of 25, and here’s my two cents:
First, buy the plot and get all the documents verified by at least two lawyers. Once everything checks out, move ahead with the bank process. For an ₹80 lakh home, you’ll need at least 20% as a down payment — but I’d recommend aiming for 30%. You can go for a composite loan, which covers both land and construction. When choosing a bank, ask about prepayment charges and conditions this is important. Try to pay off as much as possible in the early years of your loan you’ll save on interest. Keep at least ₹10 lakhs in savings so that, even if you lose your job, you can cover EMI for 6–8 months without stress. If you’re earning ₹20+ LPA, it’s realistic to close the loan in 5–8 years and then you’re free from one of the biggest commitments of your life.
I'm also in the same situation as the OP. Can I message you regarding some advice if you don't mind? I'm 25 atm. My in hand per month is 1.9L, I also have some side income of 80k-1L per month (but it's side income and not a permanent income).
My father wants to buy a independent house. Our current down payment capacity is maximum 20L (including all the cash, some from epf account, selling all shares etc.). We are thinking of going for a 80-85L house (pre built, includes land and built house).
Also, do you think we should get a land first and then build the house on our own? Or should we opt in for pre built house?
I live in Jaipur and work from home. I live with my family (parents, granda, younger bro)