Amidst all this euphoria about home loan reduction and cheaper interest rates what is being forgotten is whether you can actually afford to buy a house.
Today, someone asked me if he could buy a house worth Rs 20 lakhs in Delhi. The first question I asked him was – Does your salary support it?
Don’t forget ‘the salary’ is the first pre-requisite when applying for a home loan and that forms the basis for an EMI (Equated Monthly Instalment), unless of course you have enough savings in your bank account.
No doubt the loans have come down, but the purchasing power of the common man too has taken a dip.
The banks may have reduced interests on loans, but they have even slashed interests on deposits. So, where is the money to purchase a house?
But, all’s not lost at least for that guy who was keen on purchasing a house worth Rs 20 lakhs. For I came to know that he could manage some 7 lakhs, but still his salary could not support a house worth Rs 20 lakhs.
My suggestion in this case would be to buy an unauthorised house. If this person is lucky he might just be able to get a decent deal for Rs 10 lakhs (one room set at least).
But since he won’t be able to avail a home loan as it being an unauthorised construction, he can go in for a personal loan. But remember there’s no Income Tax rebate for personal loans.
Hello world!
2 years ago
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