Trending @Infosys; Need some good advice
I’m 28 years old, and together with my wife, we earn around 23 LPA. Both of us come from humble backgrounds, and now my parents and I wish to settle down in Pune.
At present, we don’t own a home or property in Pune. My wife works at Synechron, Hinjewadi, and I’ve recently joined Concentrix in Yerwada. We’re living in a rented 1BHK, but life is changing fast — I got married in January 2025, my parents will likely move in with us in a couple of years, and hopefully, by God’s grace, we’ll have a third family member soon.
That’s why I’m seriously considering buying a flat. But here’s the dilemma:
Property rates in Wakad, Hinjewadi, Dange Chowk, and Tathawade are already on the higher side (Baner and Balewadi are simply out of reach).
If I look at projects with late possession (say 2028), the prices are somewhat manageable.
But if I go for near-possession, a decent 3BHK would cost nothing less than ₹1.25 Cr.
Now, from a financial standpoint, I’m confused. Should someone like me take on a massive loan of ₹1.2 Cr and spend a lifetime paying EMIs, or should I think differently?
I’d really appreciate some experienced advice on which areas I should consider for buying a flat, and whether stretching for such a big loan at this stage is the right decision.
Live in a rental house for 30 k and the rest of the emi amounts 70kkeep paying in a mutual fund for 20 years and by the end of 20 years you will have close to 7 cr and the initial deposit of 20 lakh would have grown to 2 cr in a mutual fund at 12 percent growth . You would not be burdened and if you get an on-site or abroad opportunity you need not miss out on that too
I think if you are getting a 3bhk near completion for 1.25 in location of your choice go for it if your parents also don’t have a house. Sell some gold , some old property if you have. Your income will also grow so don’t delay for too long. But if your family already has a house and your rent will be substantially lower than your emi. You can continue to rent. Or if yiur rent is less than 4% of your current house or your dream house value continue to rent. Housing is in a bubble but more for investors, end users would generally. Not be jn a loss in India.
Hi, thanks for the advice, could you please explain the 4% value thing again?
Firstly, try to understand your needs like you and your wife need to go to the office everyday or it is a hybrid. For suppose, if it is hybrid, then maybe choose a flat which is 15-25 km radius from your workspace. It will be more affordable for you. For example, if you save 20 lakhs in buying a new flat. It will be useful for your children's education. If you invest 20 lakhs in mutual funds at 12% annual rate. You will get 2.4 lakhs every year so that it can be used for your children's education. So, plan accordingly and also most important try to get insurance for health and life.
Suppose the house you are living in is 1cr and the comparable house you are looking to buys is also in that range. And you’re currently paying around 4L and above yearly rent. You can go ahead and buy, as even if you keep money in bank(safe interest) you will get max 6-7% returns. After tax it will come to about same amount. So better to have an asset which will appreciate as well . But if your rent is below 3L you are actually saving money by renting and keeping your saving in bank. I am using bank rate as its safest asset but there are obvious better choices. All said and done if you don’t have a house it’s always and combined within your parents and your wife’s parents you have less 3 houses you can go for it and buy a house of your own.
