Purchasing your first home, especially post-marriage, is more than a financial decision; it’s often an emotional one too. Bangalore’s property market, like any other, has its pros and cons. But before taking the plunge, let’s evaluate the financial implications.
Given that you have an impressive monthly income of 2.5 L and a good start with 25 L in stocks, it’s clear you’re in a strong financial position for your age. That said, sinking a significant chunk of your capital into a flat, which is a depreciating asset over time, may not be the most optimal wealth-building move.
Here’s why you might consider an alternate approach:
- Liquidity: While owning a property provides a sense of security, it’s also a fairly illiquid asset. In times of financial emergencies, having more liquid investments can be a boon.
- Flexibility: As a young couple, your priorities and preferences could evolve. Renting offers flexibility. You can upgrade or relocate without the hassles of property ownership.
- Capital Growth: The money spent on down payments and EMIs could be channeled into equities, especially via SIPs. Given the long investment horizon you have, this approach might yield better financial outcomes.
Your future could involve many more milestones, perhaps expanding your family, or considering international opportunities. By not tying yourself down with a large property-related financial obligation now, you keep your options open.
To sum up, while the allure of owning a home early is undeniable, consider renting for flexibility and continue aggressively investing. This approach could provide you with not only a home in the future but also a more fortified financial standing. And if ever in doubt, seeking advice from trusted services like Jama Wealth can guide your investment journey.
