NEVER

R go for a home loa

an.

My perrsonal suggestion to ev
veryone is n
not to take a home loa
an in any coondition. This
T is a
big trap
p and you will
w never come out off it.

Let me show you a reality:

Loan am
mount: 35L
L

Tenuree: 30 Years
s. (You willl not get it ffor 20 yearrs because of
o heavy EM
MI)

ROI : 8
8.35% (Min
nimum, If you
y are luckky to get it..)

Your exxpected EM
MI: Rs. 26,,541

Total am
mount you
u are paying
g in 30 yearrs: 26541*3
30*12 = Rs.95,54,76
60

So, You
u are paying
g three tim
mes of the lo
oan amountt. Strange!!

And whhat you leftt at the end? Only a ho

ome which is still not sufficient
s aafter 30 yea
ars for
your family.

So, Do not destroyy your life by

b doing a jjob and earrning for th
he banks EM
MI.

That’s
s the probllem. Now
w what is tthe solutio
on?

Every p
problem ha
ave a solutio
on.

Let’s taake you are ready to pa

ay 25K EM
MI each mon
nth. Now, do
d not pay iit to bank.

1. Fin
nd a 2–3–4
4 BHK hom
me on rent aas per yourr need. In In
ndia it will cost you
aro
ound 10K per
p month.[EDIT]*( This is als so true thhat many ccities such h
 as metros will never be so cheap for a 3 BHK) [/EDIT] Let’s take an
estimate only.
2. Move there with your family. Nothing to do. You will get a ready, New painted,
and maintenance free home.
Now after paying 10K each month for house rent, you are still left with 15K in hand.

Let’s grow a tree of money for you.

Open a mutual fund account and start a SIP of 15K monthly. Choose a good mutual fund
or diversify if you are confused.

SIP amount: 15K/month

Tenure: 30 Years
Expected Rate of Return : 12% (Minimum)

Amount you will get after 30 years: Rs. 4,57,80,199

Strange!!

Same person, Same EMI, Same tenure and now you have 4.5 crore rupees in hand
and that is absolutely tax free.

And you are paying each month your rent for home on time.
Changed job. No problem, Change home. hahaha!!
You have cash in hand for any financial emergency.
Retire like a rich.
No house maintenance tension.

bla! bla! bla!

1000 words to write….. bla! bla! bla!

Got some fast comments.

Comment 1:

“Rent increase every year by 5–10%”.

For all of them:

Bro, don’t hesitate in paying 5–10% increment in rent. Because each year you will also
get at least 10–30% increment in salary. So, you can also increase you Rent as well as SIP
amount by 5–10% each year.

At least you are saving a lot and free from burden of a big amount of EMI.

Comment 2:

“Future value of house will be N time multiple”:

Bro.. Whatever you will get the value of the house after 30 years, You will lastly sell it to
pay your debts or to suffer in your retirement days.
Comment 3:

“Inflation Rate”

Real-estate inflation rate assumed at 4% will cost Rs. 1,13,51,891 for same home after 30
years. Nearly 1.13 crore.

And you are also paying nearly 1 Cr in total amount to bank.

So, you are still having a loss of around 3.4 Cr in same amount of time if you are paying
home loan EMI.

For all who need to do calculations by adding each Rs.1:

“Please take a home loan. XXX bank is offering lowest interest rate.”

Comment 4:

“Where do you get 2–3–4 BHK flat in 10K rent in metro city?”

To all people having this question:

Basic logic here. Please don’t go with the calculations I have mentioned above. Please do
calculations depend on the house cost, EMI amount, Rent amount in your area.
If you are unable to get 2 BHK flat in 10K rent in your city then you will also not get the
same house in 35L in that area. If rent is 20K or 25K then cost of the house will also be
double or triple. So, you need to have double salary, double EMI, double
rent and double SIP amount in that city.

Comment 5:

“Mutual fund can also destroy your wealth”

“What if stock market crashed at any point”

For all brothers with these question.

Our economy is not what it was 25–30 years before. And it will not be same after 30
years also. Stock market crash put effect only if you are investing for a small amount of
time. You will always be in profit for a longer time period above 5 years and having a SIP
in your investment.

SIP is the only thing which always save you from any stock market crash. But as the
name is Systematic Investment Plan, One should have patience and do the investment
systematically to get the benefit in market crash also.