Why Buy a House in India?

nikhilchauhan

Administrator
Staff member
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
 

arjungoyal12

KF Mentor
I also stumble upon this question Is Buying a House in India Truly Worthwhile? My children ask me questions whenever I tell them to buy some property.

They are the generations of "Rich Dad Poor Dad," which suggests that owning a house is essentially a liability if it's your residence, rather than an asset. However, I'm also aware that property value appreciation tends to be higher in India compared to the USA.

Could someone assist me in gaining a clearer understanding of this? Considering that this generation is increasingly mobile, they are looking ahead 10-20 years. Many of us work far from our hometowns or states and change jobs every 3-5 years. It seems we're adopting a lifestyle similar to Western countries.
 

harsh55

KF Rookie
Buying a house in India offers numerous benefits.
It's a solid investment in a growing real estate market with potential for value appreciation. Homeownership provides stability and a sense of security for families, and it's often viewed as a long-term asset. Additionally, owning a house can lead to potential tax benefits and savings over renting.
 

ranareddy

KF Rookie
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
It is a common Indian mentality that you are a well-doing or about a well settled person if you own a house. It is a dream of every Indian middle class person to own a house.
 

Harsh Shah

KF Expert
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
Purchasing a house for a middle class family is still not less than a dream fulfilment and majority of the population of india belong to middle class. Even Real estate investment will never face backlash in market. It's will forever be profitable in india.
 
I think buying a house , provides a layer of safety ,suppose , if you lose your job and you dont have money to pay rent, then a shelter in your own name helps , but that does not mean , you should take a huge loan for buying a house, which you cant repay, so this balance needs to be maintained. but as per my opinion,I would want to buy a house for myself
 

Hema Kulkarni

KF Expert
Apart from all the personal reasons discussed above, I would like to add some data to the discussion
- Over the past couple of years, cost of construction material has risen by 20-30%
- Over last 3-4 years, Cost of labour has increased by 50-60%
- Cost of Land has increased in some pockets (ex. In Delhi, Circle Prices are set to increase by 30% this year)

I personally feel that all of this will eventually lead to increase in prices of Real Estate in the next 3-4 years. My assessment is that on an average the prices go up by as much as 40-50% in the next 3-4 years (of course this will vary depending on area, city, and a lot of other details).

Owning to all these factors, I think Real Estate could be a good investment for the next 5 years. Would love to know others opinion in this?
 

Gigachad

KF Mentor
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
There is lot of reasons to buy a house..
It give feeling that you own a place which you can it home for whole life..

Investment, the growth rate might seems small cus its shows the official data...
Most of the dealing done in cash to avoid taxes..
 

prashantb96

KF Rookie
well ,at the intial stage owning a house in Bharat provides an emotional satisfaction which can not comparetable.
2nd reason of owning house is it becomes a safe place where people expresess and treat them in most natural way possible..
 

TshR_D

KF Rookie
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
According to me.
Many people attach sentimental value and a sense of stability to homeownership, making it a deeply personal choice. However, it's also important to consider the financial aspects to make a well-rounded decision that aligns with your long-term goals and financial stability.
Balancing both sentiments and finance will give you atmost satisfaction in my opinion. But we Indians have a perspective that " APNA GHAR APNA HOTA HAI" and this overpowers everything manier times
 

arjungoyal12

KF Mentor
According to me.
Many people attach sentimental value and a sense of stability to homeownership, making it a deeply personal choice. However, it's also important to consider the financial aspects to make a well-rounded decision that aligns with your long-term goals and financial stability.
Balancing both sentiments and finance will give you atmost satisfaction in my opinion. But we Indians have a perspective that " APNA GHAR APNA HOTA HAI" and this overpowers everything manier times
Yes, people are looking for something constant that they can call their own. That's why they don't care about money or anything. Even if the loan interest rates are high at the moment. People will still look to buy their own house. I think that's the reason the real estate market is flourishing more & more
 
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
Ask the same question to your family they will have proper answer for this...
 

Rohan_shaq

KF Rookie
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
Buying a house is very good financial investment because today 1 BHK flat in Bangalore is almost 1 crore. India is a fast developing country and so many people and lot of influencers coming to our India so in future tourism in india is grown very great fully.
Now we have very bad relations with Maldives that's why our celebraties promoting the our local tourism. In present situation everyone wants to grow in their that's why they want to go anywhere for reaching their goals in that situation they need some place to live in that we use that condition by providing a home for them and earn money by renting our house
 

Suraj.rm

KF Rookie
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
House can be bought according to one's own preference as an investment or as a home. If we are looking at an investment purpose, buying a house in metro city doesn't make sense as the appreciation value of Flats have decreased. But buying a house(built on own land) in tier 1 or 2 city still gives good opportunity of investment as the value of flat and land both appreciates
 

vivekraje

KF Rookie
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
Stay on rent, use the emi money to invest on self, buy gold, buy sip, run dihital marketting ad campaign, publish a book
 

Ria

KF Ace
What's the allure of purchasing a house in India? The idea of buying property in India for investment purposes might not appear rational from both a financial and mental perspective.

The rationale behind buying a house usually holds water when it serves as your own residence. Yet, even this notion is open to debate to some degree. What are your thoughts?
Buying a house may toll on your mental and financial health but the long term benefits can't be ignored.
1. It gives you a sense of achievement and a security in your back head.
2. Even if you're laid off from a job, you have your own land or house to work upon. Suppose you can start a small shop or office and start providing service, and if done well you can enter into entrepreneurial journey.
3. It puts a hault on an emotion of "ye dil maange more" as it will reconfigure your mindset to find stability and cut off all unnecessary expenses.
4. Whenever you put/invest some money, you want to see monetary benefit rather than the non- monetary benefit. Living on rent might give you benefits but at the end of it, you've spend lakhs and not build any asset.
5. This topic is often debatable because companies give you hefty amount of HRA of which you can claim benefit under section 10(13A) but it reduces the amount of salary which you might have received if not opted for HRA.

Eg- Your HRA is 400000 pa, Rent paid is 240000 pa and salary is 1200000 pa but according to HRA exemption u/s 10(13A), you can claim maximum exemption of 120000 and the remaining HRA is taxable i.e 280000.

Now if the salary would be total of 1600000 pa and home loan emi is 40000 per month then you can claim maximum exemption of home loan u/s 24b of 200000 + 80C of 150000 + 80EE & 80EEA of 50000.
Maximum benefit is 400000 p.a and you'll have to pay tax on rest amt of emi that is [(12*40000)-400000] = 80000

So ofcourse you can plan this mental and financial complexity and build the asset as well.
 

mangalmay

KF Rookie
According to me buying home is good why because in Shastri sri tulsi ji say ..
"pardin Sapane sukha nahi"
dependent to other Is much better than our home.
For investment, earning maltipuras use independent stay, free life long stay without any disturbance etc ..
 

Ria

KF Ace
Buying a house may toll on your mental and financial health but the long term benefits can't be ignored.
1. It gives you a sense of achievement and a security in your back head.
2. Even if you're laid off from a job, you have your own land or house to work upon. Suppose you can start a small shop or office and start providing service, and if done well you can enter into entrepreneurial journey.
3. It puts a hault on an emotion of "ye dil maange more" as it will reconfigure your mindset to find stability and cut off all unnecessary expenses.
4. Whenever you put/invest some money, you want to see monetary benefit rather than the non- monetary benefit. Living on rent might give you benefits but at the end of it, you've spend lakhs and not build any asset.
5. This topic is often debatable because companies give you hefty amount of HRA of which you can claim benefit under section 10(13A) but it reduces the amount of salary which you might have received if not opted for HRA.

Eg- Your HRA is 400000 pa, Rent paid is 240000 pa and salary is 1200000 pa but according to HRA exemption u/s 10(13A), you can claim maximum exemption of 120000 and the remaining HRA is taxable i.e 280000.

Now if the salary would be total of 1600000 pa and home loan emi is 40000 per month then you can claim maximum exemption of home loan u/s 24b of 200000 + 80C of 150000 + 80EE & 80EEA of 50000.
Maximum benefit is 400000 p.a and you'll have to pay tax on rest amt of emi that is [(12*40000)-400000] = 80000

So ofcourse you can plan this mental and financial complexity and build the asset as well.
And you copying my content😂😂😂 betaa copy karne se koi CA nahi ban jaaegaa bus CA k article hi reh jaaoge 😂😂😂.... Jaao maaf kiaa
 
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