Sir,
I am a regular reader of this Forum and the jagoinvestor site and I must appreciate the quality of work that you have been doing. I owe my basics of financial planning to your site (PPF + Term + Health Insurance have been taken care of).
I have a dilemma: I am intending to buy a flat (for residential purpose and not for investment) the total of which comes to approx 40L including registration. I and my wife combined earn approx 2.25L per month (all in white). After reading various articles on your site about Home loan, I was under the impression that buying a house with Home loan is not a sound financial decision. This was confirmed by my CA who asked me to pay about 1L per month to the Builder who has agreed to this. But a friend of mine who is also a CA, recently adviced me to go for a Home loan and pay the EMI of about 35000 per month and invest the remaining in MF. He told me that this will help me for Income tax rebate too and it will be substantial as I come under 30% Income tax bracket. He even told that both me and my wife can avail loan and both of us can avail the benefit. Kindly give your expert opinion on which is the better method.