Want to buy a 2 Crore home need suggestion ?

What does your friend do? Also how many years is he into the job? 

Term is 15 year EMI will be 117466

instead of paying EMI 

invest this money in SIP even at modest 12 % it will be  5 crore 45 lakhs

Some points from me

1. Just as everybody said, bank will not give 1.2 crore loan at this salary.

2. Maximum banks in India post 75L loans give loan of only 75% of contract value

3. Though own house is good to have but as many people already told it is not a monetisable asset as you need it to live or your family need it if something happens to you, so first have the following in place

A. Term Insurance - 20 times your gross salary, that is the max which insurance companies give you and is based on logic (if required I can give that also)

B. 6 times your monthly income in liquifiable assets for emergency

C. A Health Insurance plan of at least 20 L, health costs are increasing day by day

D. A retirement fund of at least 3 times your current annual gross (including EPF, PPF, Murual funds, etc), basically illiquid assets...

4. One can start with lower value house and sell it later to buy a bigger one (I sold my 80L house this year after being debt free last year and bought a new one)

Real estate is berserk nowadays.

Don't buy.

Better live on rent, take a plot/farm and invest rest, plan holiday.

Moving steadily is the best way.

2 cr house is everybodys dream.

Recently a relative took home and realized below:

Interiors are huge sunk cost. Thus, if there is an option to buy one with interiors already done by previous owner which looks good to you, it might be better option.

Out of reach by miles. Go for 75 lakhs flat and 10L for furnishing.

If still not happy, go for 1Cr flat with 35L loan. 

@the . OP , Is this 2cr flat fully furnished? If not add another 25-30 lakhs towards furnishing it properly . And around 8-10k each month towards monthly maintenance charges .

Just asking for opinions from others as I don't live in a metro city . How do these expensive flats' prices appreciate over time in Cities like Mumbai Hyderabad and Bangalore? In my place, even though it's a capital city ,  the value appreciation is not that good as there is so much vacant land where more and more new flats can be built . So obviously people will go for a new flat instead of an old one . My plan is to buy a vacant land and to build an independent house instead . Land prices do appreciate fast here as well .

I will give you a very helpful suggestions with the given statements it will quadraplevyour investment but fir that my fees is 500 rs  I too have bought property recently hope you would reply

So what I am getting here is, if you still want to pay rent to a property you already own, buy a flat!

just a joke. Don't come at me.

LOL, lagta hai India me tumhra friend he housing crisis start karne wala hai. 😬

You know better which one is best for you, don't know what is going to happen in next minute. 

if you want to buy then buy now don't think too much, there is no guarantee for money. 

I would suggest to go for loan till 20-30 lakh which he can complete within 10 years.

OP. That friend is you. People don't write their own name to ensure privacy.

He should take a home of ₹70l-1cr and forget about dream home.

He should pay 50% of the amount and take rest as loan. He will get a low interest loan by investing rest of the money.

Now, he should invest rest of the money in different mutual funds. He should keep around 75% allocation in index funds and 25% allocation in small cap.

After  2-3 years, everytime

he can book some profit and pay that money as pre-payment, note that this amount will directly be deducted on the principal amount, it will help to decrease the loan tenure significantly. He can do this exercise for first 10-12 years, later no need of doing that as interest component will be low already.

It is stupid to go materialistic and buy something which you don't have.

Considering current income, his loan won't be approved for a 2 crore House with 70-80l down payment. If he gets an approval then it will become a huge financial burden on everyone in the family.

Yes if his wife earns the same then there is no issue with emi close to 1Lkh

If he has ancestral properties of min 5-6cr and if family is assuring to support you in future then he you can think of spending up to 1.5-2cr. Else a big no no.

I would suggest you to diversify your investment rather than putting everything in one place.

let's assume tomorrow you would need a few lakhs for kids education or for some medical expenses, then you would be forced to sell the entire property though you need only a few lakhs. Instead if you had invested in a 70lakh flat and rest on lands in the outskirts of the city, then you can look to sell one of these at the time of financial distress.

Note: Do not take loans and invest in lands. It doesn't make sense as you will be paying interest, tax and appreciation will not be compensating these.

bhai, even someone making 2-3L per month after tax might not take that kind of pricey property.

compromise is a universal truth, tell him that he can't check all his boxes, or maybe ask him to switch to much higher package 😉

Location ?

My Honest opinion.

It is not just about buying the house but also investing your 80 lacs, which if made FD will depreciate more than inflation and lose value in some years.

Remember the golden formula 50-50 rule, that means if you have 80 lacs max you should go for a house worth 1.60 crores.

Buy something in that budget and better still buy a ready flat. If under construction than reputed builder and anyway you will not need loan for construction linked plan.

You will have the below advantages -

- you will have your own house 

- rent will be saved

- your 80 lacs are safely invested or parked

- tax benefits both principal and interest saving tax on 2 + 1.5 = 3.5 lacs - saving tax of 1.2 lac a year or 10K/month

- future is secured as houses are getting out of reach in cities and rents are also getting higher

I would not recommend taking such high loan unless you have other long term saving which you can tap in in worst case scenario of job loss etc.  Not to mention you may end up paying interests to bank alone  in tune of 2 cr plus . Emi would be also around 1 lakh per month  for a 30 year loan.

Also what if you change your job = commute time change ?

By the grace of bholebaba and one good habit of mine, I can live a much more peaceful and controlled life than most of my friends. That one habit is to live life debt-free. I have never taken any loans to date and with the grace of bholebaba will continue this habit till death. 
In any case, you have to take a loan than take it only when it's a life-death situation otherwise refrain from taking loan. 
I still remember in 2017 when I was looking for an apartment in my city I finalised two properties one was around 1.25Cr and another was 0.75 Cr. My dream property and most loved one was 1.25Cr but I just had 0.85Cr in my pocket which means I had to take a loan of 40 Lacs to get that dream property. As I am totally against taking loans till it is life and death situation I settled with the second property of 75Lacs.
Today it has been 7 years in this flat and believe me I am more than happy in this flat due to low monthly maintenance and easily accessible market and public travel. 
As its well said by someone: Jab tumhare mann ka ho toh accha par jab tumhare mann ka na ho toh aur bhi accha kyoki woh bhagwan ke mann ka hota hai.