POSTED BY May 16, 2013 9:12 am COMMENTS (5)
ONHi all,
I am earning a good salary in IT industry. I have been investing around 20000 in MF.
I don’t have own house. My family is pressurising me to buy a home as my relatives, peers hav e own house. If I redeem all my money it will be around 15lakhs. I still have to go for home loan of 20 lakhs.
As IT industry is shaky and due to job insecurity, I am really afraid to take loan.
Please suggest me what decision I need to take.
Ram
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Parents are right in their own way, so can’t blame them. It’s true everyone is buying house just like everyone goes to school, everyone goes to college(engineering/medical), everyone gets married. Social pressure is always there.
Advantage of buying house early is you will have a house (no renting , house hunting), be able to pay loan off early etc etc.
Job security esp. in IT is not guaranteed but if you do well and are not in bottom 10% then it’s kind of safe.
Question is why do you need a house? You need to list pros and cons..
maybe you will shift your company,place of working , take wife’s inputs..etc and then decide why you should or should not buy a house. If not now then when.
Family often declare statements like – “get a house” , often cut off from the financial situation . The best thing you can do is ask them to tell you from where to arrange the money and how it will be worked out incase things go wrong .
At the same time, I think you can make a plan to buy a house in next 2-3 yrs and show your family the plan for it . Overall its a tough situation to deal with , all go through it 🙂
Manish
Thanks Ashal,Manish and Credexpert for suggestions.
I will think over again.
Ramprasad
Dear Ramprasad,
Redeeming all your money for the Home loan would not be a good idea as setting some amount as a contingency fund is essential. Create a budget plan and analyse your monthly income against the expenses. Also consider your financial goals for the next 1-3 years. In all ways opt for a loan amount that would not impact your financial stability.
Regards,
Credexpert
Dear Ramprasad, please do not budge from your position & keep on renting. Till you are not sure of your financial position & the house you want to purchase.
Also prices are correcting now all over India. So that ‘ll be a positive to face the pressure.
Thanks
Ashal