No you should still go for a flat. Just limit your budget according to your earnings. If needed, go for a 7/8 year old flat. Your EMI should not be more than 30% of your net monthly income...Also your plan should be pay off the loan in 6/7 years, by making some periodic bulk pre-payments etc...even if the initial term is 15 year or 20 years...This way, you can maximize your savings on income tax and also ensure that you dont fall into debt trap. Future interest rates are likely to be maximum 11-12 percent ( we are almost at that point now )...
Flat being an investment, is a need in the long-term...If you make some sacrifices now, you can build an asset for the future,..
Post Office, NSC tax exemptions will slowly be phased out over 4/5 years..Also now way we can continue to get good interest rates on these..
