I got married a year back. My husband and I both are working professionals. we both are earning well and can save 50000 per month combined after deducting our rental of 25000 per month and all other fixed and variable expenses. We want to own a flat of our own but we don't have much savings for a good down payment. So please advice that we should go for buying a flat on maximum loan or remain staying on rented flat and investing our savings on mutual funds
Also you should consider your career path in relation to where you currently live. If you plan on worker your way up in your careers and that involves moving in less than 5 years then renting is probably easier and more fiscally responsible.
If you Mortgage a property/house and that value goes down and you need to move then you've lost quite a bit of money and time(selling a house is always a headache).
Generally in India these days the EMI that one pays equals the Rent one pays. Hence it does make sense to buy a house rather than rent. Of course there are other aspects when one is buying the house, Down payment is one aspect, and then do you want a commitment, are you planning to stay in the same city, is there a locality that you have zeroed in.
So first look at the tentative budget and create a funds for down payment. Generally in India one needs to put 20% of the overall price as down payment. This is at times reduced to 10% by some builders / Financial Institutions.
Definitely we should go for buying a house, because of the property value increases overtime. As time passes the property value will keep on increasing, hence the early you purchase home the better and the loan period will end early.
EMI payment should not be a problem these days. However the down payment is pretty huge and we should be having the required amount ready with us when we plan to buy a home.