Our basic human need is to have a decent shelter to protect us from the sun, insects, wind, rain, hot or cold weather, and enemies. Humans have been on the lookout for a suitable shelter since the early man age. We can now get shelter either by buying or renting a house.

Every human being’s dream is to own a home. The majority of people, particularly Indians, consider owning a home as a lifetime achievement. Those who cannot afford to own a house will rent. There are various options for purchasing a home, including using our savings or taking out a mortgage loan.

Let us now determine whether we should purchase or rent a home.

The majority of an Indian family’s costs are spent on paying rent. People choose to buy a house rather than pay high rents as it allows their future generations to live in a rent-free lifestyle. Are they, however, doing the right thing?

Aspects to look before buying a house on mortgage:

Purchasing a home with savings is preferable because the house value will most likely increase in later years, allowing us to benefit from future resale value. However, the primary issue emerges when we take out a mortgage loan and buy a house.

According to Finance with Pradeep, if we take out a mortgage loan, the repayment period will be between 20 and 30 years. That means we’ll be dedicating a significant percentage of our monthly income to repaying our debt for the next 20 to 30 years!!!

Our entire financial stability will be disrupted as a result of this decision until we clear our EMIS. We will have to minimise our other expenses or seek more revenue options to balance our financial independence as we will be  spending a large amount of our money on EMIs for many years.

Hence, think about the factors described above and make informed judgments about buying a house with a mortgage.