Home Loan EMI Formula: If you are planning to buy a house then this news is for you. Actually, today in this news we are going to tell you about the benefits of buying your own house. It will be beneficial for you to know them.
Someone says that one should not buy a house, there is benefit in living on rent. Some people believe that one should have one’s own house, living on rent has many problems along with financial losses. But half the truth is told behind these two arguments. Today we will tell you the whole truth. After all, when, who and why should one buy a house or live on rent?
Actually, everyone dreams of having their own house, then other things. Because it is connected with the house in an emotional angle. That’s why some people buy a house or flat as soon as they get a job, this is a trend especially in metro cities. This is also possible because home loans are easily available and savings are invested in the down payment.
Before buying a house, everyone should consider at least four aspects and then take a decision. When you consider these aspects, you will not need any expert, you can decide yourself whether a house is important for you first or it would be a wrong step.
First criterion –
Salary should be this much: Employed people should buy a house when the amount of home loan EMI is only 20 to 25 percent of the income i.e. salary. For example, if your monthly salary is Rs 1 lakh, then you can pay home loan EMI of Rs 25 thousand per month. But if the salary is between 50 to 70 thousand rupees and you buy a house by taking a home loan, its EMI is 25 thousand rupees every month,
then this decision will be considered wrong financially. Because it takes a long time of at least 20 years to repay the home loan. This thinking or advice that one should not buy a house is absolutely wrong. There is advantage in living on rent only. If only 25 percent of the salary becomes EMI of the loan then definitely buy a house.
The advice to such people would be that if the salary is between 50 to 70 thousand rupees, then save by living on rent, and when the salary reaches around one lakh, then they can buy a house by making more down payment. The more down payment you make, the lower the EMI will be.
Financially, it is believed that if someone’s salary is Rs 1 lakh, then he can decide to buy a house worth Rs 30 to 35 lakh. Whereas if the salary is Rs 1.5 lakh per month, for such people a house up to Rs 50 lakh will be suitable for the budget. That means, in any case, the maximum amount of home loan EMI should be 25 percent of the salary.
Second criterion-
Everyone should take decisions as per need. What do you do, what is your job profile? Decision should be taken on this basis. If you buy a house first, then you will be tied to that city in a way. Most of the people shift from one city to another in the initial phase due to career growth.
But people are not in a position to change jobs after purchasing a house along with their first job. 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.
Third criterion-
If you have decided to buy a house, then definitely select the property. If you want to buy a flat, then buy it in a location where the rent is good. Also, the price of the flat should increase by at least 8 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.
Fourth criterion –
If you want to invest in real estate keeping investment in mind, then instead of buying a flat, it would be better to buy a land-linked house in Tier-2 or Tier-3 cities, if a land-linked house is not available. Now, only land can be bought.
Land has always given better returns than flats. Not only this, a decline in flat prices was also seen in many cities of the country last year, in such a situation buying a flat can be a loss-making deal. Whereas after purchasing land, you can build a house on it as per your wish.
It is noteworthy that some people put the burden of EMI on themselves by buying a house and car along with their first job. Which later proved to be a completely wrong decision. Therefore, take decisions as per need. If you take decisions based on earnings, you may face financial difficulties. Another important thing is that if you start saving with your first job, then at the age of 40 you will be confident about your retirement.
