House property prices in metro and semi metro cities?
I am earning lakh rupees a month(excluding my monthly expenses as a single). but when I think about buying a house (2bhk around 7.5 to 8 hundred sqft) in a city like Pune/ Banglore. I feel I will not be able to afford it considering other expenses (along with 60 k emi). but when I see people with a salary of 50-60k per month buying the same houses. how are these people planning it out? and most of the people earn between 30-60k how you guys are planning it? how should I plan this for myself? and 20 years of repaying the loan. i feel it's a trap.
I am one of these people who bought a flat in Bangalore despite a mediocre salary. In my case, parents are paying at least 75% of the cost
Um, try asking them? Most are gonna say that their parents paid the largest share.
In fact, a lot of parents are just waiting for their child to get settled into a job. They have the money to buy the house on EMI, and since kiddo is now earning, there's peace of mind as well.
WattCoconut
Stealth
9 months ago
Cause it is either papa/mama ka paisa or fallen into decades worth of high interest loan trap living paycheck to paycheck cause of lack of personal finance knowledge.
Don't even think of buying a house unless you can afford half of the payment without taking loan.
Qwerty2398
Stealth
9 months ago
An unpopular advice that was given to me - buy a property whose price doesn't exceed your 7 year salary. Cut down all your additional expenses and have a frugal living for 4 years. Meaning no vacation, no weekend outings, no movies no expense other than your living expenses. So you only spend on basic things. All savings in fd or gsec. No mutual funds no markets.
You will breathe relief in 5 years.
I did not follow this. Wish I did, i could have had a property in a good area today.
DesignTinker
Stealth
9 months ago
Very few people have financial knowledge. They follow generational norms by
1. getting a job
2. when they save enough for a deposit, they book an apartment on Loan
3. Next get married
4. A car
5. Kid
Most are buying on home loans, personal loan for interiors, vehicle loan for car and so living on paycheck to paycheck. I noticed Mose of the home buyers have no other investments (other than mandatory provident fund) as the loan EMI is high, childrens expenses add to it too. So don't believe everything written on social media. Buying a home without at least 40% down payment is a trap.
That's true. I was also on same place 2 years back.
Here's what I planned:
- Try to arrange DP as more as you can. I'd say at least 20 - 30%. (With your salary, I think you should have some already by now)
- House prices are anyway increasing. If you delay, you'll need to pay more.
- Pressure will make you work more harder.
Obviously, if you have parents support, it will make it smoother
That's true. Even people with enough savings from their parents will afford the loan. I am talking about the situation, When you are earning above avg salary monthly and you don't have any of your parents savings. How will you manage in that situation. A single source of income and largest share going to emi how will you enjoy other things like traveling to diff country, buying a 4 wheeler or thinking of starting a small business which needs a small corpus of 5-10 lakh.
Delay your purchase, build a corpus then you can think of buying. Other than that there is no other route 😊
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One could be SIPs and another one could be their EMIs are probably shared with another member in the family
