Thread by @VidyaG88

1/10
*OWNING A HOUSE *

Having a self owned home is a dream come true for the majority of us . We still equate it with prosperity & being settled .
But with the alarming cost of reality (especially in Metro's) when does this make sense?
My viewpoint on the same.
+

2/10
(So called)Pro's :
*Having your own place - Pride of possession.
*An investment .
*Having liberty to decorate as per choice { provided the wife permits 😉 }
*No need to shift often.
*Loan available at low interest rate.
Easy way to #leverage in markets (Common blunder!)

3/10
Are these really as good as they sound?

*The pride of owning a house comes with buckets of stress ,for most of the properties are purchased taking huge #loans spread across 2-3 decades of repayment.
So are we actually owning a house or is the bank possessing us ? 🤔

4/10
Another point :
A huge loan makes us #RiskAverse. Instead of improving skillsets we end up bound to the same job out of fear. Sure, increments shall happen but what about opportunity cost?
Focus should be on career & if needed one must be ready to move as per opportunity.

5/10

*No shifting of houses*
Very subjective.
What is the point of travelling hrs each day to reach work ? Half the life is spent such with no time for anything else!!
Buying your dream house only to stay in it on a Sunday too exhausted to do anything! 🤷

6/10
* Decorate the house *
Many claim this to be important!
I really think this is just emotions. A house becomes a home when people residing in it are happy & stress free. Even rental places can be done up nicely !! 🤷
Financially feasible & better.

7/10
Using #leverage & investing loan amt in equities whilst extending tenure of home loan can backfire big time . An acquaintance lost most of his capital trading whilst sitting on a loan as well.
What if something happens to us meanwhile ?
RISK REWARD ratio seems skewed .

8/10
To sum it up.
*Purchasing a house is ONE of the MOST important financial decisions. MUST be done PRACTICALLY.

*Stay WITHIN MEANS .Don't get carried away to own that DREAM property shown by the realtor for the cost paid for such dreams can BURN your pockets completely !

8/10
* Take a #TERMLOAN while purchasing the property to ensure nothing untoward happens to the house in the event of untimely death .

*Save up 60-70% atleast towards down payment.
Take min loan & plan repayment in a short duration. (Calculate beforehand) .

9/ 10
*#JointLoan helps immensely. Both for tax benefits & the burden becomes considerably less.

*Stay WELL WITHIN MEANS while purchasing first property. One can always buy a BIGGER,BETTER one if earnings improve drastically!

*Stay on #rent as per HRA & claim tax exemption.

10/10
Let's not over estimate our income /under estimate our expenses in the quest to own our home & pile up #debt upon us in the quest to wow the society .
LET PRACTICALITY PRECEED EMOTIONS.

@dmuthuk based on your tweet today.
@position_trader
@RichifyMeClub
@safalniveshak

Pls note : It is a Term Insurance and NOT Term loan . 🙏
Noticed my mistake after posting it and sadly Twitter doesn't have an edit option yet ! 🙄

Clarified it thrice but it got lost in the sea of messages! 😟
APOLOGIES!! :))