http://www.subramoney.com/2014/03/important-steps-to-buying-a-house/
6. Buy a house if you want to live in a house and can afford it
Absolutely brilliant. To me affordable house is when you pay 50% downpayment for the house, (not 10% contribution and a 90% loan and a 10% personal loan to pay for the stamp duty and party for friends.)
http://www.subramoney.com/2013/02/dilberts-9-point-financial-plan-will-it-work-for-india/
http://www.subramoney.com/2013/09/so-you-want-to-buy-a-house/
Let us see if you can afford a house: -
- can you afford to pay at least 40% of the cost of the house as a down payment?
- can you afford to pay the EMI on just ONE salary while running your household ?
- will you REALLY save any rent that you are currently paying?
- what happens if you buy the house, and at the same time your wife gets pregnant and is advised bed rest?
- what happens if one of you quit a job voluntarily and one of you lose your job involuntarily?
- remember if you take a 25 year loan, how quickly will you really repay?
- how prepared are you for a loss of job coupled with a fall in property prices?
- do you know at what inflexion point of the housing boom you are buying a house?
- are you buying a house to live in or hoping that the property prices will double in 3 years time as it has happened for your friend?
- using immediate past data to predict immediate future data is a HUMAN disease, and you are human.
- if real estate prices were a NEVER coming down spiral, the BFSI would have convinced you that YOU should NEVER buy but PERMANENTLY stay in a rented house, they would own the house.
- do you have a parent who can step in and take the burden
– or are they financially dependent on you?
- is your spouse supporting you with a whole heart or are you PUSHING your agenda on an unwilling wife?
- if things go wrong will your spouse stand by you or bug you with ‘I told yous’
- are you buying as a scoring point, because somebody with who you compete has bought, or you really need a house?
- is it an ego problem that you cannot stay in a Rented house any longer?
- have you asked your boss about your appraisal and also your spouse’s boss’s view on her appraisal and job prospects in general?
- are you over paid? be blunt. If you are and you lose your job…you may not find a new job easily…
- what happens if you are transferred to a different location?
-can u afford rental there as well as here and the EMI?
6. Buy a house if you want to live in a house and can afford it
Absolutely brilliant. To me affordable house is when you pay 50% downpayment for the house, (
http://www.subramoney.com/2013/02/dilberts-9-point-financial-plan-will-it-work-for-india/
http://www.subramoney.com/2013/09/so-you-want-to-buy-a-house/
Let us see if you can afford a house: -
- can you afford to pay at least 40% of the cost of the house as a down payment?
- can you afford to pay the EMI on just ONE salary while running your household ?
- will you REALLY save any rent that you are currently paying?
- what happens if you buy the house, and at the same time your wife gets pregnant and is advised bed rest?
- what happens if one of you quit a job voluntarily and one of you lose your job involuntarily?
- remember if you take a 25 year loan, how quickly will you really repay?
- how prepared are you for a loss of job coupled with a fall in property prices?
- do you know at what inflexion point of the housing boom you are buying a house?
- are you buying a house to live in or hoping that the property prices will double in 3 years time as it has happened for your friend?
- using immediate past data to predict immediate future data is a HUMAN disease, and you are human.
- if real estate prices were a NEVER coming down spiral, the BFSI would have convinced you that YOU should NEVER buy but PERMANENTLY stay in a rented house, they would own the house.
- do you have a parent who can step in and take the burden
– or are they financially dependent on you?
- is your spouse supporting you with a whole heart or are you PUSHING your agenda on an unwilling wife?
- if things go wrong will your spouse stand by you or bug you with ‘I told yous’
- are you buying as a scoring point, because somebody with who you compete has bought, or you really need a house?
- is it an ego problem that you cannot stay in a Rented house any longer?
- have you asked your boss about your appraisal and also your spouse’s boss’s view on her appraisal and job prospects in general?
- are you over paid? be blunt. If you are and you lose your job…you may not find a new job easily…
- what happens if you are transferred to a different location?
-can u afford rental there as well as here and the EMI?
