What if I complete the home loan in next 5 years and then put that property as collateral, will my next loan have less interest?

Welcome to Personal Finance's Private Community

Home Loan

Strategy & Operations

Home Loan- Grapevine

I was thinking about this few days back...Today a swiggy employee validated my thoughts so posting here.

Layoffs are mainly in cream jobs(20-30% which is hardly 2-3cr source tax web) and in India mainly home loans or highly consumable loans like car or PL are taken by White collars...As per labour law, we ain't protected like in Korea.

So, if someone or let's say a major chunk loses his or her job then how the system will absorb this default?

Some data...

Fy23 Home loan Size is 20 lac crore or $250B (15% of total loans disbursed by amount)

2030 it's about to touch $1T

Cagr 23% in HL growth 📈

What if defaults rise in dual digit?

Plus exorbitant hike in flat price like literally greater Noida West have 5lac unsold flat but still 10lacs worth flats are being sold at 40-50lacs (poor quality and seelan issues after a month)

PS - Usa and China have seen this. (2008 and ongoing in China)

Home Loan Crisis in India 📈

Senior Consultant

I've got a package around 40 LPA with 4 yrs exp, with 1.8L as take home

Now, my parents are looking to buy a house at my home town (tier 2 city). It costs around 65L, so have to a loan of around 50L which will be around 65k EMI every month for the next 10 years

Also I'm passionate about working on side projects doing some part time gigs, share around 40k to my family for their needs. This house loan will have a burden on me for sure, do you think it's the right decision to take home now or maybe postpone it to later?

Is House Loan better early in your career?

Senior Data Engineer

I'm planning to take a loan for 60Lacs.

which is the best bank to take from to get the lowest interest rate.

what should be the duration of loan  5 or 10 years - based on getting Tax exemptions.

60 Lacs Home Loan

Product Owner

I stay with my parents in a tier 2 town. We have a 800 sq. ft house which is more than 100 yrs old. We are really scared of living in this home as it is fully damaged. 

Yesterday one incident happened one of the walls got demolished. Fortunately we were not there at that time. 

For the past few yrs, We wanted to reconstruct our home from base, but the total cost is around 20 lakh. 

I have been working for the past 2 yrs but hardly able to collect 3 lakh as I spent most of the money by giving it to my father during my sister's marriage.

Guys, can anyone suggest 🙏🙏 there is any source or platform from where I can raise funds. We need to raise around 14 lakh.

Guys need your valuable opinion!

Analyst

Welcome to Software Engineers's Private Community

Thinking of buying 2 bhk in prestige , Adarsh , Shobha , brigade around 1 cr , pre launch delivery in 2027 plan to take loan, and it’s only investment can I get rich and sell in 2 cr and retire from my job . Please give me honest advice

Buy 2 bhk in Whitefield  for investment

Data Scientist

people whose gross salary in the bracket of 11-13 lpa, please share tax saving tips or any video resource. Recently joined 30% bracket. Can we claim tax for under construction property too??

tax saving tips

Software Engineer

Next month I'll (26M) be taking a personal loan of 10L to pay off my family's borrowings. 

1. Any tips on managing the loan?
2. I have a good credit score so I can get it through a national bank like HDFC, SBI, etc.
3. Shall I pay it off in one instant in future or keep paying EMIs? I say one time payment because we plan to sell some property in future to get liquidity. 
4. Anything else I should take care of? 

I have savings of around 5L and I have a stable job for next 6-12 months (it's a startup so things are lil shaky right now). I plan to find freelance projects and increase my income. But this is the first time I will be taking a formal loan so it seems like a big and long commitment. 

Thanks!

Getting a loan soon, anxious about it

Founder

Planning to buy a house. I'm confused about what should be the max price range I should be targeting for. I was okay with going till 2 cr since I would be able to do 40% down-payment and take loan for 15 years whose monthly EMI wouldn't be more than 1/3rd of my monthly in hand salary. 

But after talking to few folks, realized that people are actually okay going for costlier properties. 

People who bought house in last 3-4 years, what % down-payment did you do and what % of your in hand salary is your EMI?

Home loan

Software Developer

Hello folks. While I'd like to remain anonymous very much, here's what I can share about myself.

1. Working in consumer finance.
2. Love personal finance and helping people out with it.
3. Have published 10,000+ pieces of financial content in the mainstream media.
4. Wrote a best-selling book on money management. It was No. 1 on Amazon once upon a time. 
5. Lately been appearing on TV regularly for personal finance discussions.
6. Saved like crazy through my 20s and 30s, brought two apartments; have an 8-figure net worth mostly thanks to my mutual fund investments. It's not much but it's hard-earned.
7. My unrealised aspiration is travel and I'm working on it now.

No, I'm not selling anything. No commissions, no referral links, no finfluencing. 

Just want to talk, exchange ideas, and learn from you all. Maybe I'll feature you in my next book. :)

Ask me anything.

Let's talk money habits.

Corporate Strategist

I am planning to buy a house(but in my mother's name) maybe at the end of 2024 so I wanted to have some clarity on the questions below.

House price = 100 + other charges?
Suppose somehow if I have 70 to buy the same house and I need remaining 30 + other charges.

1. How to get a loan for the remaining amount considering the house won't be in my name?
2. Will I get a house loan?
3.Do I need to apply for a personal loan?

Please share your thoughts🙏

Advice for loan

Hi All,

I am interested in a property in my hometown that costs around 3.5 Cr. This property can easily be rented out for atleast 1.5 LPM. I have saving of around 1 Cr, should I take a loan of rest of the amount ? 

I make around 70 LPA, 54 is fixed and rest is ESOPs.
My wife makes around 12 LPA.

What do you think ? Should I take this loan ?

How much maximum loan should I take ? Advice needed

Need to understand which home loan charges can be bargained or are hidden and not shared yet to me. Buying almost ready property in Bangalore.

Curent charges shared with me:
1) SBI - interest - 8.4 %
Legal and valuation ~ 5.2k
Property Insurance ~ 15k one time mandatory as per bank 
MOD - 0.3%
2) HDFC
interest - 8.3 %
Processing - 2 k
Property Insurance ~ says later bank will call, it is optional
MOD - 0.2%

Home loan charges

Hey Grapeviners,

I need help from all the experienced folks out there.

I and my father have 2 loans:

1. Educational Loan EMI - ₹6500/month for 15 years (₹ 7 lakh loan)
2. Home Loan EMI - ₹22500/month for 9 years (₹ 17.5 lakhs loan)

I am 22 and started my full-time career this month and wanted to understand how to repay 2 loans along with my father quickly with less financial burden. (I am the only child)

My expenses -

1. Paying Home Loan EMI - ₹ 22500/month
2. Investments - ₹ 30000/month
3. Petrol - ₹ 5000/month
4. Miscellaneous - ₹ 5000/month
5. Left with - ₹ 20500/month (lumpsum)

Should I create an emergency fund for myself first with the remaining amount or what else should I do, totally blank in this case?

My father looks after the household expenses, education loan, and his own investments. Not sure, how much he is left with at the end of the month as I am not aware of his income. (He has a private job)

P.S. - 

1. I spend consciously and don't have a bad spending habits. I love to drive (bought a car myself in Dec 2022) and climb mountains, so I manage to do treks every 3 months.

2. I am rigid about my investment amount, so may not compromise on that part.  

Would be forever grateful, if I get some helpful suggestions.

How do I pay 2 loans most efficiently?

Product Manager

I have saved 15L in the past 2.5 years, and i am planning to buy a home worth 50 L in tier 3 city. I want to take a Loan of the remaining amount and i am the only earner in my family. Considering the current situation of Layoffs/Downsizing etc etc in IT,is it okay to take a loan and solely depend on my income for loan repayment. Im 25 rn and we don't have our own house. So need one. What are the other ways in which i can buy a home.

Should i go for home loan

Data Analyst

Hi There, I have a homeloan, instead of investing in stocks I am trying to foreclose my home loan.
Me and my wife both comes under 30% tax slab.
Is this good idea?

I’m trying to close my homeloan

Network Administrator

Hi all,

This is in response to a survey I found on the app, where people voted mostly on reducing Tenure by prepaying their home loans.

As someone who works in lending myself, and in the light of the funding winter extending a few more Quarters, I would urge people to shore up their finances and keep control of your liquidity.

Be very careful when prepaying Home loans:
1. Loan is a service for which interest is a cost. The deciding numbers to prepay are the differential interest outgo (Loan rate-Debt fund rate) / 12 as a proportion of your monthly expense. It comes to around my monthly 1700 Rs for 10L of outstanding. 
2. DO NOT look at the total interest outgo. That is a misleading figure. Prepaying loan to save total interest over 10y is like selling your car 10y earlier to save parking costs or selling your TV to save Netflix charges. 
3. Prepaying is irreversible. If you run into cash crunch later, most probably, your financial standing and ability to get loans would decrease. Better to not prepay and enjoy the flexibility. 

Posting the parent link below.

When part prepaying home loan… - Grapevine.in

Do Not Prepay Home Loans!

Investment Manager

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