Скачать или смотреть Dream Home: Right Age to Buy a House? | Financial Freedom | Home Buying Tips | Merupula Madhu

Welcome to SocialPost Finance! Host Nihal interviews Financial Planner Merupula Madhu to discuss the critical decision of when and how to buy a house.

Key Takeaways from the Discussion:

Planning for Your Dream Home

The conversation explores the planning required for individuals aiming to purchase a house, typically between the ages of 35 to 40. Before making the purchase, it is mandatory to consider the corpus needed for the down payment, registration charges, and necessary expenses for interiors and furniture.

Sentiment vs. Mathematical Reality

For 80-90% of Indians, owning a home is a huge sentiment, providing a sense of value and avoiding the troubles associated with renting and frequent moving. However, many financial experts agree that mathematically, the later you buy a house, the better.

The Dangers of Low Down Payments and the EMI Trap

• The video discusses the common practice of low-down-payment schemes, such as 10% down payment and 90% home loan (10/90 scheme).

• Problems often arise five or six years after the purchase. If the required down payment is raised through personal loans, credit cards, or borrowing from relatives, and the resulting EMI exceeds 30% to 40% of one's salary, financial trouble is inevitable.

• When 60% to 70% of a person’s salary goes towards EMI, life becomes compromised. This financial commitment blocks opportunities for exploring travel or pursuing business/startup ideas. People often find themselves caught in the "EMI trap".

Strategic Planning for Financial Freedom

Financial planning should start early, ideally around age 25 or 26 when income begins. To avoid future complications, it is advised to plan for at least a 50% down payment.

Instead of rushing the purchase, the panel advises delaying buying a home for 10 to 12 years (from 25 to 35 or 37). During this period:

1. Job Mobility: You are not tied down by a location and can easily move for better job opportunities (e.g., from Hyderabad to Bangalore or Pune).

2. Corpus Building: Use the amount that would have gone towards EMI (calculated based on the expected loan size) and invest it via SIP or other methods for 10–12 years.

3. Confidence and Protection: A strong financial portfolio built up over this time offers two or three times the confidence that just owning a house provides. This corpus acts as a protection mechanism. If a job loss occurs, the family has a buffer for one to two years without tension.

A Cautionary Tale

The video shares an example of a customer who bought a ₹2.5 crore house with a low down payment despite advice to wait. Following his unfortunate passing, his family faced severe difficulties because the loan did not have protection. Despite receiving a ₹1 crore life insurance claim, the wife, who was a housewife, could not handle the ₹70,000–₹80,000 EMI. The bank eventually auctioned the house at a substantially lower cost, resulting in the family losing their upfront investment and jeopardizing their future.

The Takeaway: Do not plan to buy a house until you have successfully accumulated the 30% to 40% down payment. A long-term plan involving portfolio building before home purchase is crucial for financial freedom.

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Dream Home: Right Age to Buy a House? | Financial Freedom | Home Buying Tips | Merupula Madhu
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#Finance #Investing #MoneyTips #SocialPostFinance #Socialpost

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