Nice videos with respect to frame work. My 2 bits 1) eventually emotional weightage becomes higher when it comes to decision making 2) wrt 1 cr house example, after 20% downpayment ~20l , emi would be around 70k . This as per frame work should be 25% of income , so essentially you are saying income should be close to 2.5-3l per month . How many people do we realistically know who earn that kind of money and then stay in 400sqft 1cr house in a metro region eg- mumbai ? 3) after buying primary house - it should not be considered as asset . Would it matter if the real estate price falls by 50% after purchase ? . You’ve bought it as consumption. After that if it rises 100% or falls 50% becomes pointless . Best to think of it as consumption. Also wrt stability of income . Also need to see in today’s environment if job is SAFE !
Great insights... Recently shifted to rented property to loaned property myself, went through all the pointers discussed. Having said that, i think Arun missed out on the fees (legal, stamp, registration, mutation, brokerage etc) n the basic moving costs (movers, BASIC interiors n furniture-fittings) to be added. Both things put together inflates the costs by 10-15%, which till now no expert has discussed ever.
Personally I feel one should not go for a buy as soon as they have 30%. They should at least have 50% or 1.5x annual salary in hand before even thinking of buying. 30% is not conservative it is the minimum amount needed. 20% down payment and 10% registration charges 11:52
Very informative and tons of learning . One Q on the rental yield thumb rule of less than 4% favorable will that be taken for commercial property as well?. Any advise
I have a doubt, regarding the 3x framework, I'm assuming the salary in question is in-hand, right? Because in hand varies largely as compared to before tax income 😄
The fundamentals explained in this video are not applicable for NCR. Would anyone here give me a 1 single example in NCR where (Home Loan Rate - Rental Yield) is less than 4%. Listening to the podcast is different from ground reality. If one follows the rules mentioned in video he wouldn't be able to own a house anywhere in India.
