First time buyer
1
Hi all,
I’m a first time buyer and there are a few queries I would like you guys to address.
1. What should be the EMI ratio to income? (It’ll be a joint home loan)
2. The apartment where I am living right now, on rent, is also available for sale. It’s located in one of the most quaint places in Frazer Town. I’m really interested in buying this house but am advised not to because the resale of 24+ year old property will be tough, for good profit.
3. What are the right areas for investment? I really like Hennur Road, but the rates have gone up like crazy. Any upcoming area around Hennur with average rate of Rs. 3500 per sq.ft?
2 Answers
2
accepted
Hi deepesh, my answers are based on my experience and my priorities. May not completely applicable to you, but worth reading.
1) If you are buying for first time, donot think too much about ROI. Concentrate on how good the place will be to live with your family, kids, parents in future. You can plan for investment from 2nd home onwards.
2) You are right, lets assume, according to BDA, apartment life is 50 years,(actually it is 30 yrs). Half of it is already over, so you are paying huge money just remaining half in building’s lifetime.
3) Have a look at other developed cities like Bombay, Delhi. Development of city always grow towards airport. But based on your budget, you will get lot more options.
If you buy a property with ROI in mind, you will be happy only when it happens.
if you buy a property that makes life better, you will be happy always and ROI will be definitely come.
Good luck.
0
Thanks rplusg. Real insight in the last two lines of your reply.
However, I’m not really worried about the ROI. What I am looking for is a place which I can call home for at least a good 7-8 years.
And I’ve read somewhere that the optimum EMI to Monthly Income ratio is 1/3rd or 33.33% and it’s ok to stretch it to 40%. I’ve seen a lot of people putting in 60% ratio considering that their salary is only going to increase…and it will. But I don’t want any unnecessary load. So what would be the right ratio in current market scenario.
Let me just add this now. Here’s a question for people looking at apartments in Hennur/Horamavu/Kalyan Nagar Area…do you think I can get a decent 3 BHK for 70L (inclusive of everything). Or should I look a bit far away from these areas?
