Buying a house in India offers numerous advantages, including long-term investment potential, stability, security, and the pride of homeownership. It's a tangible asset that appreciates over time, provides a sense of belonging in the community, and offers potential rental income or resale value. Additionally, owning a home can offer tax benefits and protection against inflation. Overall, it's a solid investment in both financial and personal security for the future.
Why Buy a House in India?
- Thread starter nikhilchauhan
- Start date
zacobite
KF Mentor
its a stable investment in the long run as we never invest this quantum of money in one asset ever! eg. will you put 50L in stock market at one time.. never for most ppl.. so overall it is a decent avenue to invest in or for self use.. Biggest disadvantage though is that it is fairly illiquid.. so any urgent money need cannot be fulfilled
shaistha Anjum
KF Ace
Buying a house in India can be appealing because it tends to increase in value over time, offering a good investment. It also gives a sense of stability and security, which many people value. Plus, owning a home is often seen as a symbol of success and provides a place to call your own. But, it's important to think about things like where the house is located and how the housing market is doing before making a decision.
maulikshah279
KF Rookie
So here we are considering Buying vs renting from pure financial point of view. Specifically if you are taking a loan to buy a home.
What we tend to miss is the capital appreciation that we are going to enjoy on the borrowed money (which is being borrowed at the lowest possible interest rate).
So Lets say you have 20L and you are eligible for 90L of loan for which monthly EMI will be 70K (27 years @8.35%). Rent for same property will be 25K. So by renting you save 45K. So your 20L investment (in FD) and 45K per month SIP both even at 9% will be 6.9 crores at the end of 25 years. Where as the property of 1.1 crores will be valued at 7 crores even at 7.5% inflationary growth in house price. Please note you will also pay higher rent over the years and the deposit money which is required to be kept with the landlord.
Actual the above is due to gains enjoyed on leveraged money. So ideally you will have to stay on rent plus borrow money and invest that too in the market to beat the returns on own house.
What we tend to miss is the capital appreciation that we are going to enjoy on the borrowed money (which is being borrowed at the lowest possible interest rate).
So Lets say you have 20L and you are eligible for 90L of loan for which monthly EMI will be 70K (27 years @8.35%). Rent for same property will be 25K. So by renting you save 45K. So your 20L investment (in FD) and 45K per month SIP both even at 9% will be 6.9 crores at the end of 25 years. Where as the property of 1.1 crores will be valued at 7 crores even at 7.5% inflationary growth in house price. Please note you will also pay higher rent over the years and the deposit money which is required to be kept with the landlord.
Actual the above is due to gains enjoyed on leveraged money. So ideally you will have to stay on rent plus borrow money and invest that too in the market to beat the returns on own house.
RITIK Jain
KF Ace
If you're looking for investing purpose, then you should invest in property funds, which is similar to Mutual funds, but by this, you can also invest in commercial properties with small amount. As the property rate increases, your investment will also increase. It's the safest way to invest in property, as I found.
Related to the same topic, a video is already uploaded on YouTube's BEKIFAYATI Channel.
Related to the same topic, a video is already uploaded on YouTube's BEKIFAYATI Channel.
