To all finance influencers
Please stop patronising everyone to invest in SIP instead of buying a home. Because if in the end, you need to buy a home only then it’s better to buy now instead of waiting for your corpus to grow 5 Cr. Buying home should always be your priority.
majboormajdoor
Stealth
14 days ago
Strongly disagree.
For all non-financial reasons, go ahead and buy it.
But considering the financial perspective, it is a bad decision to buy a home. Homes are overpriced. Land cost+construction cost barely cover 30% of the asking price. So you end up paying 70% extra as margin to the builder.
Even on an ongoing basis, flat/appt prices in cities don't appreciate as much as Equities. Flat/Appt are illiquid and sell much lower than what you expect from Real Estate CAGR. Construction shows its age. Old Architecture and designs stay less relevant.
On a personal finance angle, the high EMIs will be at the expense of other essential expenses. Eg: having another kid, their education, or even to open your new venture.
15y down the road, a 5Cr corpus with rented place is much better than your owned 4Cr owned house+1Cr corpus. Liquid wealth matters!
Agreed! Liquid wealth matters most. Buying a costly flat and going cash zero, looks such a big unwise decision. If someone doing Govt job does it, it still makes sense, but Private Sector guys doing this, looks so unwise, bereft of any financial understanding.
Also the interest we'll be paying over the years doesn't make sense at all. We're basically making the bank richer.
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DaringTrain
Stealth
14 days ago
I also love to burn my money.
My poison is Crypto
Same view. One YT influencer said that living in rented flat is better than owing a home. Strongly disagree considering emotional factor.
DaringTrain
Stealth
14 days ago
Will you not switch jobs considering emotional factor if you are not being paid well?
Because that's what a home loan does. It's makes us poorer.
It makes us live a lifestyle lesser than what we deserve and can afford.
majboormajdoor
Stealth
14 days ago
I like Elaichi Chai, for emotional factor. ₹10 ki chai k liye I will pay ₹30 if it has Elaichi.
But won't fucking buy a ₹1000 Elaichi chai either.
That's what Home prices today are... Forcing you to pay 1.5Cr extra for something as cheap as ₹50L cost price.
Evaluate in ₹ how much you want to pay for those emotions. And the other opportunity costs of those emotional costs.
If one wants mobility then it’s doesn’t makes sense to buy house unless you have cash lying around.
I do understand the emotional bit as I am yet to purchase a house and putting >1Cr or 1.5 because of emotion reasons is plain wrong imo.
My circumstances might be different from others, I have my parent living with me and moving to different cities with me. Folks whose parents are not that mobile can think of make their base in a city.
At the end of the day, it all depends on the situations and person is in.
