Buying A Home Is An Emotional Decision But It Needs Smart Financial Planning
Bengaluru-based Raghav Sen was a carefree man before he got married at the age of 27. He changed jobs quite frequently which meant he never stayed in the same house for very long. But all that was about to change. His wife, Sudha Sen, did not approve of his nomadic lifestyle and wanted him to 'settle down'. Buying a house, she said, would be the first step in that direction.
She found support from her in-laws too. Before he knew it, the IT professional was filling up home loan application forms. For many youngsters like Raghav, home buying — a move that decides what is going to be the state of finances for years to come — is purely a personal decision made in haste.
However, those who wrote the book on financial prudence would tell you it would be akin to committing a major financial blunder.
Your wife wants to start a family but she doesn't want to do it in a rented home.
Also, most of your friends are home owners now and you feel 'inferior'. You do not have much to add to the discussions that take place in all those house-warming parties. Your family also thinks you are wasting your precious salary on rent and leisure. It's high time you stopped living like a student, they tell you.
This stuff could be quite emotionally moving but you must also look at where you stand at that very point as far as your finances are concerned. Do you have enough money to make the down payment? Are you prepared to spend a large part of your monthly salary in EMIs (equated monthly installments)? You have to think harder if you are investing in an under-construction property. Investing in a property would bring you the best results when your emotional instincts have a solid financial background, too. Count each penny before you go ahead to become a home owner is what we suggest. Moreover, planning to spend money on decorating your new home? Here's how you can do it on a budget.