I am 25 years old and in my first job. Is it wiser to buy a house early in my career or focus on building financial assets first?
Adhil Shetty CEO, BankBazaar: If for yourself is a primary priority, then go for it, but be mindful of some challenges. First, securing a home loan may not be easy as some lenders may require two years’ continuous employment to be eligible for a home loan. Second, only a part of the cost of the house will be covered by the home loan. For instance, if the purchase price of a house is Rs 50 lakh, the actual cost of ownership, including furnishing and other expenses, will be around Rs 65 lakh. Of this, the loan will cover only Rs 40-44 lakh. While making a big commitment like home ownership, ensure you have an emergency fund, which should ideally be six months of expenses, to avoid defaults. Home buying is rewarding but requires disciplined planning.