When Should You Buy a House?
Once upon a time, owning a house was just a distant dream. But times have changed. Today, many people are no longer just dreaming — they’re actively turning that dream into reality. In fact, for some, buying a house has become a strategic investment decision rather than just a personal milestone.
With real estate being a popular avenue for wealth creation, many buyers are crunching numbers, calculating future returns, and debating between buying under-construction properties or ready-to-move-in homes. But which option truly benefits the owner? Let’s explore this through a simple, relatable story.
A Tale of Two Friends: Varun and Charan
Varun and Charan were colleagues at the same company. Both were well-paid professionals, married, and living comfortably in the same city. One day, during a casual conversation, the topic of buying a house came up.
Varun was firm — he wanted a completed, ready-to-move-in house. On the other hand, Charan believed that an under-construction property would be more affordable and yield better returns in the long run. Despite agreeing on most things, the two friends couldn’t find common ground here.
Eventually, Varun purchased a triple-bedroom flat near his office for ₹1 crore. He invited Charan and his wife to the housewarming, and they had a wonderful time celebrating the new beginning.
Interestingly, on that very day, Charan spotted an under-construction apartment nearby. The pricing was within his budget, so he booked a flat right away. According to the pre-agreement, the possession was promised in four years. Charan believed that by booking early, he had secured the property at a lower-than-market price.
So, Who Benefited More?
Let’s break it down.
Varun’s Case:
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Property Price: ₹1 crore
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Down Payment: ₹15 lakh
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Home Loan: ₹85 lakh over 20 years
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Monthly EMI: ₹77,000
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Previous Rent: ₹25,000/month
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Net Increase in Monthly Outflow: ₹52,000
Varun stopped renting and moved into his own home immediately after purchase. Over the next four years, he enjoyed the comfort and security of living in his own house while steadily repaying his loan.
Charan’s Case:
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Booking Amount: ₹10 lakh
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Loan for Remaining ₹60 lakh, disbursed in phases
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Interest Paid During Construction:
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Year 1: ₹1.75 lakh
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Year 2: ₹3 lakh
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Year 3: ₹4 lakh
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Year 4: ₹6 lakh
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Total Interest Paid: ₹15 lakh
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Rent Paid During 4 Years:
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First 2 years: ₹25,000/month = ₹6 lakh
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Next 2 years (after rent increase): ₹30,000/month = ₹7.2 lakh
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Total Rent Paid: ₹13.2 lakh
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Combined Cost (Interest + Rent): ₹28.2 lakh
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Property Value at Possession: ₹1.4 crore
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Net Profit After All Expenses: ₹13 lakh approx.
While Charan did end up with a decent profit on paper, the path was not smooth. The four-year wait brought with it a lot of uncertainty, delays, and frequent visits to the builder to track progress. Meanwhile, Varun was comfortably living in his flat, free from such stress.
Don’t Treat Your Home as an Investment
The takeaway from this story is simple: a house you intend to live in should not be viewed primarily as an investment.
Both Varun and Charan made financially sound decisions, but Varun had the added advantage of immediate possession, mental peace, and emotional satisfaction. When a house is bought solely as an investment, the focus shifts to returns, often at the cost of comfort and stability.
Of course, buying an under-construction property isn’t always a bad idea — especially if it’s a secondary investment after owning your primary home. Some reputable builders offer attractive rates during the pre-launch phase, which can be a great opportunity. But if you’re buying your first home, consider choosing a completed property and moving in as early as possible.
Final Thought
Buying a house is a big decision — both emotionally and financially. Whether you go for a ready-to-move-in flat or an under-construction one, make sure your decision aligns with your current needs, not just future gains.
Don’t wait for the “perfect” time. Choose the time that’s right for you and your family — and step into your new home with confidence.
The Decision That Changed Their Comfort
Varun and Charan had been friends since their college days. Both landed great jobs in the same city, got married, and even worked in the same office building. They shared car rides, lunch breaks, and weekend dinners. Life was good.
One fine evening, over cups of chai on their apartment terrace, the topic of buying a house came up.
Varun had been eyeing a ready-to-move-in flat near their office. He liked the idea of walking into a fully constructed home, avoiding rent, and starting his life in a space that was already his. Charan, ever the strategist, felt buying an under-construction flat made better financial sense — lower cost, appreciation in value, and flexible payments.
A few months later, Varun moved into his beautiful 3BHK flat. He invited Charan for the housewarming, and the evening was filled with laughter, lights, and the aroma of homemade biryani. That very day, Charan spotted a banner advertising a pre-launch offer on a high-rise nearby. Encouraged by the pricing, he booked a flat, dreaming of big returns in a few years.
Fast forward four years.
Varun was settled, his home now full of memories — birthday parties, rainy-day chai sessions, and late-night movie marathons. Charan, meanwhile, was still living in a rented flat. Construction delays, rising rent, and increasing loan interest had drained much of the excitement. Yes, his flat’s market value had increased — but the stress, uncertainty, and waiting had taken their toll.
Both had made their choices. But while one had lived the comfort of ownership, the other had waited for it — chasing a return that came with a cost.
This story captures the emotional and practical aspects of the home-buying decision and ties in perfectly with the key message of your blog: Don’t treat your first home as just an investment — treat it as a space to live, grow, and find comfort.
✨ About Me
Hi! I’m Manikanta Reddy, a passionate finance enthusiast with a strong understanding of money management, personal finance, and smart investment strategies. I believe financial literacy is the foundation of a secure and stress-free life — and I’m here to share practical insights, real-life examples, and simplified advice to help you make better financial decisions.
Whether it’s choosing between paying off a loan or investing, building emergency funds, or planning for retirement — I love breaking down complex topics into easy, actionable tips that anyone can follow.
Let’s learn, grow, and build wealth — the smart way. 💰
