We are in a completely different state of mind, when we think of
buying our first home as this idea is going to be the one of the biggest
decisions of our life, and isn’t it true!
Be it is a simple clerk or the owner of a big company, the first house
is the biggest financial decision of everyone' s life. Hence, it is but
natural for all of us to be in a confused state of mind. But according to
me, buying a house and that too our first house is a more important
goal for anyone prior to getting married, in the current scenario.
Reason being in the current generation, having the first independent
house is the top most priority and deciding factor for a marriage to be
fixed.
Today, in this article, we are going to discuss the first misconception
about buying a house
Is the first house not an asset but a liability?
In the current state of affairs, the first home is definitely not a liability
Because when we buy the first house, we buy a real estate which is
really real. As we all know that the price of real estate keeps
appreciating in long term. We generally take 80 to 90% of the loan
from banks while buying a house, that means we have some own
amount from our savings which is term as own contribution in the
language of real estate.
Generally Own contribution is only 10% or 20% while buying home.
Just note that we become the owner of the home 100% by paying 10
to 20% of the money and when we sell it in long term then we get full
return on full 100% value ant not only on our own contribution!
(Kindly note real estate is long term game.)
e.g., I sold a house to a customer in 2014 for Rs 50 lakhs, at that time
his loan was 40 lakhs and he had put 10 lakhs as his own contribution.
One thing to note that he had taken possession of a house worth Rs 50
lakhs just by paying Rs 10 lakhs and this could happen only because
of the home loan !!! and his home loan eligibility ( due to his job )
But today if he decides to sell the house, he will get an average rate of
95 lakhs to 1 crore for the same flat. (Again, it also depends on right
location and right consultation) Even if we add the loan interest to
cost for 10 years, cost of flat will be around 65 to 68 lakhs including
interest. Now the important thing to note here is that he is benefiting
worth 25 to 32 lakhs when he has actually invested only 10 lakhs. In a
nutshell by investing just 10 lakh rupees, he made a profit of 25 to 32
lakh rupees and will get an added benefit of income tax up to Rs 2
lakh per annum, if we calculate it for ten years, then the benefit of
about 20 lakhs will be received from this home. All this is possible
only because he bought a home at the right time.
Apart from this, home loan insurance is mandatory while taking loan
from any bank. Hence, I feel that the house is the insurance of your
family because if some untoward incident happens to you, then you
would have taken the roof for your family already and due to this
home loan Insurance, your family will not need to pay any EMI of the
house or pay the remaining loan amount.
So, think about how much your family is benefiting from buying a
house?
And if you don’t take decision to buy home, then how you can able to
take home loan insurance? can you take it out?? Certainly not.
So, the first house is not an asset or liability. In my opinion the first
house is the insurance of our family.
And the sooner we get insurance, the better it is so that the sooner we
buy the first house, the better it is for our family.
We are starting the first article on this real estate topic from today
Let's talk about another misunderstanding next week if you have any
other doubts or suggestion or feedback or sharing, you can ask me or
connect with me.
What is your view on this? Just search for realtor Sagar Lendwe on
YouTube and get more information about real estate or contact me on
8767005500.
Sagar Lendwe
founder
Pune Property Guide
