Don’t Let a House Drain Your Wealth: Here’s Why

A House is Not an Investment!

Every common man’s dream is to own a house. Some people consider it their life’s goal to fulfill it. This type starts searching for a house of their choice as soon as they reach the age of 60. There is another type of person who starts searching for a house of their choice as soon as they get a salary of Rs. 60,000.

Both these ideas are not correct. Do not consider a house as an investment. Do not decide that it is an emergency. Don’t Let a House Drain Your Wealth: Here’s Why

Changing Priorities Over the Years

If we go back thirty years, the average employee did not think about his own house even when he was approaching retirement age. Children’s education and their marriages were the first priority. Only after that, the matter of a house!

Now the trend has changed! The number of people who want to own a house before marriage is increasing. Whether the salary exceeds Rs. 60,000 or not, their minds are turning towards their own house. Some people are talking on the day of marriage, “I have seen a flat in such and such a place. If you see it and it is okay, I will give you an advance.” The mother-in-law who gives birth to the child also asks, “Does the boy have his own house?”

In the context of the changing times, many people are seen fulfilling their dream of owning their own house as soon as possible. Don’t Let a House Drain Your Wealth: Here’s Why

Accurate Calculations Matter

Now let’s discuss people with a slightly different mindset! They do not have much emotion. They are not bad people. They do calculations a lot. They weigh the pros and cons of everything.

It would be a mistake to say that they give priority to family values. Every work they do is for the good of the family. But, it is not to the liking of that family. Don’t Let a House Drain Your Wealth: Here’s Why

Their equation is as follows:

• To buy a house worth Rs. 60 lakhs, a down payment of Rs. 10 lakhs to Rs. 15 lakhs is required.

• Another Rs. 3 lakhs for registration and other expenses.

• For a loan of Rs. 45 lakhs, installments of Rs. 40,000 per month for twenty years are required.

If the same is in a rented house, it will be Rs. 15,000. If you are thinking of deferring your home loan and instead investing Rs. 25,000 per month in SIP mutual funds for 20 years, you will get a net profit of at least Rs. 3.20 crore.

Since there is no down payment or anything in advance, you will get a return of Rs. 4 crore if you put Rs. 30,000 in SIP per month.

This idea is good! You think that you can live a peaceful life after retirement with that four crore! You cannot miss this guy’s attitude.

Adventure Beyond Your Dreams

The third type of people are even more strange. They modify their goals for recognition in society. They even ignore it in a way! They do not even think about the basic fact that ‘the wind blows like a tree’.

They think, “I want my house to be better than that of so-and-so’s relative’s house,” and they try their best to make ends meet. They apply for a bank loan, down payment, and registration. All this ends up in a mess. The financial transaction becomes unbearable. They remain rotation kings for life.

As a result, they are unable to get their children admitted to a good college and give them a mediocre education. That will affect their lives as well (.Don’t Let a House Drain Your Wealth: Here’s Why)

Final Thoughts

That is why, do not get emotional and take risks beyond your strength when it comes to housing. At the same time, do not hesitate to fulfill your dream of owning your own home even if you have the ability.

In short, do not consider a house as an investment!

You should think, “Will I miss out on anything else in life by buying a house?” If you think that it may interfere with your children’s education and other goals, postpone buying a house.

But, it is not right to create wealth without buying a house. It is your responsibility as an individual to make your family happy! Think carefully about your spouse and make a wise decision based on your income.

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