Should I buy a house?
Hey wise folks, some background on me:
- From a Tier-2 city, have a family home there. Parents are not financially dependent on me.
- Living in a Tier-1 IT hub city
- Age: 25, CTC: 35 LPA+ (increased recently, was earning decently for the past 2 years as well, although not this much)
- I have around 30L of savings across MF, PPF, EPF, liquid cash combined.
It was always a childhood dream of mine to have my own house, but seeing the prices in the city I wonder if it makes any financial sense to buy one.
I'm really not comfortable with taking a home loan for 15+ years and can't afford one without it. Absolutely hate the idea of owing money to a bank, especially long term.
Also, parents might want to move in with me in the next 10 years, so I also want a big enough space to accommodate everyone yet maintain some privacy (a duplex?)
Specific to hyd: a duplex of 120-150 sqds costs around 1.5cr to 3cr. Although the seller will not accept the amount in loan. They demand atleast 50% in cash (black). So you need to have atleast 80 lakhs liquid cash and go for loan for the rest of the amount.
Note: the prices I have quoted are in the actual city, not in/near the IT hub.
On top of it you need more cash for registration, interiors, etc. i suggest save for 3 more years atleast. You are still young. You still have time.
@Dekisugi this is so true I'm annoyed by the situation here in Hyderabad. We are looking for a decent house far from the IT hub, still the prices are huge and the sellers demand 50% in cash! A change needs to be brought somehow...
You should buy a house if you Can.
What is this childhood dream of owning a house. Worst excuse I've heard from so many to buy a house.
Earn well, save well, invest well, live life a bit. When you HAVE to buy a house, you can do it. When you have a spouse, your career, their career, everything to juggle, you can't have a 20 year home loan before that, clouding your mind.
My take is, you should take a loan if required to buy a flat/villa of your liking.
We need a house of our own to stay, renting permanently is not a great option.
