I was having a conversation with my friend cum colleague about how he has booked a 3 BHK for $150K for a family of 2 in that he is planning to take a Home loan for $120K which is huge considering the recession, job loss as well as the returns in the longer run. Looking at the above example, in this world which runs mainly on credit, one can buy anything with credit, the only catch is you have to show an income to support it.
With this affordability, a lot of young earners buy a home at a very early age, because of credit, salary hikes etc. But this doesn't mean that we should park all our savings as well as almost all our monthly budget to an EMIs. The builders and the bank want to sell a larger amount to you because it's a profit for them but can be a loss for you in the future. When I asked them the same thing to my friend, his argument was -
These are well-thought-of answers and it works for most of the people out there, mainly salary hike, with promotions and other things people can easily get up to a 30% hike and which will actually reduce the pressure of EMIs. But there are some problems with this approach also,
I am not against taking Home Loans, I too have taken and will take them in the future too, but having High EMIs just for the sake of a bigger house is not good in any circumstances. They can buy 2 BHK or 3 BHK a little far from the city which can actually reduce a lot of their EMIs burden.
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Same thoughts. Personally, I still can't understand why my parents were willing to borrow money from my relatives and get a loan from banking institutions to build our house. They like to acquire things that they thought it is an asset but are somehow a liability. When I get older, I realized that I should cut this mindset.
!chatgpt why You Don't need a Bigger Home
There are many reasons why someone might not need a bigger home. Some people prefer to live in smaller spaces because they are more efficient and easier to maintain. Others may not want the added expense and responsibility that comes with a larger home. Additionally, some people may not need a bigger home because they do not have a large family or do not entertain frequently. Finally, some people may simply prefer a more minimalist lifestyle and do not want the clutter and excess space that a larger home can bring.