I am 24 year old,Recently completed Post Grad.and joined with initial start of 15K , stays in a rented flat where already rents are high !! in my family my mother and a sister is there ,They stay in our independent House in another city.I have no other loans or anything...rather than satying far from family now i want ma family also with me,But rather than paying Rent i would prefer to pay EMI,as Property will retun profit too..!! and that will somewhat reduce the total monthly cost as we will stay together....!! Now my question is..if i target a 1 BHK flat around 12 - 16 lac...by paying 3 - 4 lac downpayment and rest as loan...where my objective would be investmet and saving as after 2 4 years i ll be looking for a bigger house...what would be better idea either get some experince and wait till i get good growth in job and go for "HL for Salarised Employee" or can i take the HL on my Exsisting House,kind of mortgauge.
I am 24 years old, I save 15000/- per month. i don't have any saving till now because its blocked for long term. Can i get loan to buy 40 lac house without making any down payment And what will be the time duration of loan if i pay 15000/- EMI.
Re: Can i buy a house
by Ashwin Rath on Mar 18, 2009 05:41 PM Permalink
for a house worth 40L you need to pay up 15 % atleast as down payment. That works out to 6L. The remaining 34 L would have to be paid by Loan. For 34L loan, you need to pay around 34000 per month for the coming 20 years (assuming 8.5% interest). I donot think you are prepared.
Just guide whether this is the right way to go for home loan, my current status is as mentioned below, Gross:15,000/- Monthly expentiure:8,000/-. I can save upto:7,000/-. And i request to suggest which bank i go for, either MNC or schedule bank.
i am 23. i am with my family. i save from 10-12k every month is it ok 4 me 2 take a home loam or will it be bettter 4 me 2 save money for 5-6 years and then buy me a home as the home i am planning 2 buy i s 5-6 lacks only as the interests rate r high plz guide me
Hi Uma Iam also facing the same question Found ur answers on the article really interesting But a small doubt. U told that "At an EMI of Rs 6,000, you should get a 10-year loan of around Rs 7,50,000 (at 8% per annum). " How could that be? Is it that i will get a loan for Rs 7.5 lakh at Rs6000 EMI for 10 years ?
One more point that I want to tell you about getting a home loan is this:
Assume you buy a house worth Rs. 25,00,000/- YOu make a down payment of Rs. 5,00,000/- and take a loan of Rs. 20,00,000/- Your emi would be about Rs. 19,000 p.m. on a 15 year loan
You do not pay tax for this 19,000/-
Also, at the end of 15 years, the house (which is now more valuable) belongs to you and disposing it off earns you a great profit. Even otherwise, it remains an asset where you can stay without paying rent or you can earn a handsome rent out of it.
Re: home loan
by Ashwin Rath on Mar 18, 2009 05:44 PM Permalink
Yes. Your are right. A house is almost NEVER a burder / liability. However you need to be sure when to buy one.
