30 LAKH House with 28K Salary - Rent or BUY?! | Money Matters Ep. 85 | Ankur Warikoo Hindi

"if you invest the remaining ₹9,600 in a debt mutual fund. We will not take any risk of this at all, we will not invest it in any stock market or buy gold, nothing like that. We will invest it in debt mutual fund which will give us only 8% per year but will give it consistently. 8% believe and believe for 7 years. So after 7 years this ₹9,600 will become around ₹16,000."

"Secondly, you will now be saving ₹15,000 every month from March. So you will put ₹3000 in emergency fund. You will make your own personal investment of ₹5,000. This is for myself. Mother is not for father, not for sister. You will invest ₹10,000 for yourself and the remaining ₹7,000 for the house."

"And if you do that and I just show you that if you invest this ₹7,000 if you increase this investment by 5% every year. If you invest it in Nifty 50 then you will not take much risk. So it is not that if you invest in small cap or all this etc. then on an average it will give you a return of 13% and if you do this for 7 years then you will be able to make ₹1 lakh ₹0000 from it."

"The house that you want for ₹30 lakhs, its price would also have increased today, it would have increased by 7% on an average because real estate is priced at that much. So if we increase this ₹ lakh by 7% for 7 years then its value will become ₹ 48 lakh."

"So if your salary increases by 5-6% every year, then your current salary of ₹28,000 will be around ₹42,000 after 7 years."

"But after saying all this, should you do it or not? Whatever you heard from me, what is going on in your heart right now Prachi? Are you feeling scared or are you feeling happy? Actually both because if whatever balance amount I have left for the month is spent in EMI then I will not be left with any emergency fund. If by chance some emergency arises, I will not have any access amount."

"My personal opinion would be Prachi that instead of buying a house now and trapping yourself and completely restricting yourself, you should wait for a few years and take this decision. Invest the money you get from selling your house or from your extra salary. Earn money from it. And then after 5-7 years when your income can support that EMI. Your corpus should be well below 50%-60% down payment, at that point even if you take a loan you will be in a far easier more comfortable spot than today."

"And at the age of 35 because you will be 35 at that time, your situation will be very different at that time, your life will be very different, perhaps you would have been married by that time. Maybe there will be children too. Mom and Dad will want very different things. Sister would very well want different things. So you will be in a much more comfortable spot to make that decision as against today where according to me if you want to buy a house then you can buy it but you will get stuck."