Should I go for home loan or continue with staying in a rented flat? This dilemma is there in every working professional’s mind. My friends use to say, if you really hate your job then take a home loan you will definitely start loving your job.
Home loan is a long term commitment,no matter what you just have to keep paying EMI for 25 years. Once you take a loan you hardly come out of your comfort zone. You will be hesitant to take any important career decisions, job safety becomes top priority than new opportunities.
Many of us would have stayed in a rented flat for a very long time, so we always dream of buying our dream house one day. For few of us, that’s our parents dream as well. Even today most of our parents consider that we are settled in life only after we buy our own house.
Consider if one wants to purchase a 2 BHK flat in a metro city like Chennai, bare minimum it costs Rs.60 lakhs. Forget about purchasing any individual flats, thats beyond reach for most of us.
If you apply for a home loan of 60 lacs for 25 years, you end up paying almost Rs.50,000 EMI. After the loan tenure ends, you would have paid almost 1.5 Crores in including interest. But in the future mostly RBI will increase interest rate, you will end up paying even more.
If I drop the plan of home loan and started invested just half of my home loan emi in any normal SIP, with expectations of just 15% returns investing for same loan period of 25 years, then by end of 25 years i would have corpus of more than Rs.8.2 Crores.
This is much better than committing yourself for a 25 year home loan. Being debt free gives you a lot of freedom along with that building a corpus in the long run through regular monthly investments will definitely help you.
I would say for most people buying a flat is an emotional decision, they follow what their heart says rather than what their mind says. Think about it.
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