Last Updated on 19/08/2024 by wccexam Desk
Rohit’s salary was 50 thousand, he bought a house, my salary is more than his, I should also buy a house now. Will it be a right decision to buy a house after looking at others? And should Rohit have bought a house on a salary of 50 thousand? These are such questions, whose answers you should also know. When should one buy a house, what should be the salary to buy a house, where should one buy? If you know the answers to these questions, then you will never get trapped in the hassle of home loan.
Actually, everyone dreams of having a house first, then other things. There is an emotional angle attached to the house. That is why some people buy a house as soon as they get a job, especially in metro cities there is a trend of buying flats. This is also possible because home loans are easily available, and people invest their entire savings in down payment.
The rule says that if you are in a private job, then before buying a house, you should consider at least these 4 aspects and then take a decision. When you consider these aspects, you will not need any expert, you can decide for yourself whether a house is necessary for you first or not?
What should be the salary (first criterion): Salaried people should buy a house when the EMI amount of the home loan is only 20 to 25 percent of their income i.e. salary. For example, if your monthly salary is Rs 1 lakh, then you can pay Rs 25,000 per month as EMI of the home loan. But if your salary is between Rs 50 to 70 thousand and you buy a house by taking a home loan, and its EMI comes to Rs 25,000 per month, then this decision will be considered financially wrong. You can get trapped in the trap of your loan. Because most people take home loans for at least 20 years.
This thinking or advice that one should not buy a house is completely wrong, there is benefit in living on rent. If only 25 percent of the salary becomes the loan EMI, then definitely buy a house. However, if the salary is between 50 to 70 thousand rupees and the monthly installment of the home loan is up to 20 thousand rupees, then you can buy a house up to a maximum of 25 lakh rupees.
But if the price of the house is more than Rs 30 lakh, then it is beneficial for those with a salary of 50 to 70 thousand to live on rent. During this time, focus on saving every month, and when the salary reaches around one lakh rupees, then you can buy a house by making a higher down payment. The higher the down payment, the lower the EMI will be. Financially, it is believed that if someone’s salary is one lakh rupees, then he can decide to buy a house worth Rs 30 to 35 lakh. On the other hand, if the salary is one and a half lakh rupees per month, then it would be right to buy a house up to Rs 50 lakh. That is, in any case, the EMI of the home loan should be a maximum of 25 percent of the salary.
Whether the house is needed or not (second criterion): Everyone should take a decision according to their needs. What do you do, what is your job profile? Decisions should be taken on this basis. If you buy a house first, then in a way you will be tied to that city. Most people shift from one city to another in the initial stage due to career growth. But if a house is bought with the first job, then people are not in a position to change jobs. Because they do not consider it appropriate to go to a new city and live on rent and then give their house on rent. Also, if you do not have a secure job, then do not buy a house in a hurry.
Where to buy a home (3rd scale): If you have decided to buy a house, then definitely select the property. If you want to buy a flat, then buy it in such a location where you get a good amount in rent. Also, the price of the flat should increase by at least 10 percent annually. So that the price of the flat also increases according to inflation and when the home loan is repaid i.e. after 20 years, the current price of the flat should be at least three times the buying price.
Future plans should not be affected (fourth criterion): Some people buy a house and car with their first job and put the burden of EMI on themselves. Which later proves to be a completely wrong decision. Because your time will be spent in paying the loan EMI. You will not be able to think about saving, because as soon as the salary comes, after EMI, that much money will be left, with which you can meet the household expenses, you will not be able to save even if you want to. Therefore, take decisions according to the need. If you take decisions based on income, then you may have to face financial difficulties. Another useful thing is that if you start saving with the first job, then at the age of 40 you will be assured about your retirement.
Source (PTI) (NDTV) (HINDUSTANTIMES)