विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
Kavita
Ramalingam Kalirajan9282 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on Jun 04, 2025
Asked on - May 24, 2025
I have a son who is 30 years old and is unmarried.He is earning a salary of Rs.100000 net per month and I am asking him to invest in property now but he is saying staying in rental till the age of 45 is better than paying in EMI.According to me paying the EMI now and completing the EMI at 45 is better option.Please advice.
Ans: I understand your intention is from care and foresight. You are thinking long term. Your son too seems financially aware. Let’s look at this from a 360-degree view so both perspectives are respected.
Below is a detailed and structured analysis using a step-by-step approach.
Understanding Your Son’s Present Situation
Your son is 30 years old now.
He is earning Rs.1,00,000 net every month.
He is currently unmarried.
He prefers to stay in a rented home until 45.
He does not want to pay EMIs right now.
You feel EMI now is better than rent till 45.
You want him to buy a house and close EMI by 45.
Assessing the Rent vs EMI Dilemma
Let us look at renting first.
Rent is lower than EMI for same house.
Rent keeps cash flow free for investment.
But rent is an expense, not an asset.
He will never own the house by paying rent.
But rent gives flexibility to move easily.
Now let us look at EMI.
EMI builds ownership slowly.
EMI is higher than rent and long term.
EMI is not flexible if income stops.
House bought early becomes an asset by 45.
Cash Flow Impact Comparison
If he rents, he saves more monthly.
That saving can be invested with discipline.
If he takes a home loan now, big EMI will start.
That will reduce investable surplus.
For next 15 years, majority income will go into EMI.
Rent allows freedom to pursue career changes.
EMI creates a burden if job changes or salary drops.
Liquidity vs Asset Creation
Renting keeps him more liquid and agile.
Buying gives him fixed asset but less liquidity.
Rental lifestyle fits people who may relocate.
EMI fits people with long-term settlement idea.
Young age is best for flexible investing.
Locking money in property early reduces growth chances.
Mutual funds can offer much better returns than house appreciation.
Tax Implication Perspective
Home loan gives interest deduction under Section 24.
Principal part of EMI gets 80C benefit.
But these benefits are capped and not unlimited.
Tax saving should not be main reason to take loan.
Rent also gives tax deduction via HRA if he gets it.
Mutual fund LTCG has new rules now.
Above Rs.1.25 lakh profit is taxed at 12.5%.
Still, long-term MF investment beats property returns.
Real Estate Risks to Consider
Property needs big upfront payment.
Registration, maintenance, tax, brokerage all add up.
Many new projects face delay or fraud.
House needs upkeep, legal checks and physical visits.
Selling property is tough in emergencies.
Rental income is taxable and grows slowly.
Real estate is not passive or smooth.
Many get stuck with low returns or bad properties.
Let Investments Do the Work First
Your son can focus on building portfolio first.
Mutual funds are flexible and managed by experts.
He can invest through SIP every month.
Choose regular funds through Certified Financial Planner.
Direct funds miss guidance and risk control.
Regular funds give support and periodic review.
Professional help aligns investments with life stages.
Index funds should be avoided.
They just copy market and don’t protect during falls.
Actively managed funds adjust as per market.
Better risk-adjusted performance than index funds.
Why Buying Property Early is Not Always Best
If he buys now, he commits Rs.25K to Rs.40K EMI.
That affects investment, travel, career risk, and marriage planning.
Property prices grow slowly and are not liquid.
Staying on rent gives time to explore and grow.
After 40, he can settle where he wants.
That home will then match his actual needs.
Buying now may be emotionally satisfying, but not financially optimal.
Let’s Project an Alternate Path
Let’s assume he saves Rs.35,000 monthly in mutual funds.
Over 15 years, that can become Rs.60 lakh or more.
He can then buy house in full or part-cash.
He will have more choices and peace.
No EMI. No pressure. More freedom.
Marriage, career change, travel—all remain open.
Investments create wealth silently.
House can come later with no regret.
Balance Both Viewpoints with a Middle Path
You are right to think of early ownership.
He is right to think of flexibility and liquidity.
Buying house is not bad, but timing matters.
Let him build strong base first.
Then buy house that suits lifestyle after 40.
Ask him to stay committed to SIPs.
Ask him to review financial goals yearly.
You both want the same thing—security.
But the method can be flexible and thoughtful.
What He Should Avoid at This Stage
Avoid ULIPs or money-back plans.
Avoid real estate as investment now.
Don’t rush into flat booking due to peer pressure.
Avoid direct mutual funds without expert help.
Don’t go for property loans just for tax saving.
Don’t consider annuities or bonds for now.
Don’t invest in crypto, F&O or stock tips.
Action Plan for Him
Start Rs.30,000 to Rs.40,000 SIP monthly.
Use regular mutual funds with Certified Financial Planner.
Split investments for goals like marriage, house, retirement.
Keep emergency fund of 6 months ready.
Buy term insurance of Rs.1 crore.
Get personal health insurance.
Reassess house buying at 40, not now.
Review investment progress once a year.
Let money work hard now, house can wait.
Finally
You are concerned for his security and future.
He values flexibility and growth.
House buying can wait. Investing cannot.
EMI binds the present. SIP builds the future.
A house is not always the best first asset.
First priority is wealth creation, not property.
Let his money grow before taking big liabilities.
He can buy a better house later without stress.
Both of you can be proud of this balanced choice.
Give him room to grow and support him emotionally.
Keep healthy family conversations on finances.
He is walking a thoughtful path. Let him walk it with discipline.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
(more)
Below is a detailed and structured analysis using a step-by-step approach.
Understanding Your Son’s Present Situation
Your son is 30 years old now.
He is earning Rs.1,00,000 net every month.
He is currently unmarried.
He prefers to stay in a rented home until 45.
He does not want to pay EMIs right now.
You feel EMI now is better than rent till 45.
You want him to buy a house and close EMI by 45.
Assessing the Rent vs EMI Dilemma
Let us look at renting first.
Rent is lower than EMI for same house.
Rent keeps cash flow free for investment.
But rent is an expense, not an asset.
He will never own the house by paying rent.
But rent gives flexibility to move easily.
Now let us look at EMI.
EMI builds ownership slowly.
EMI is higher than rent and long term.
EMI is not flexible if income stops.
House bought early becomes an asset by 45.
Cash Flow Impact Comparison
If he rents, he saves more monthly.
That saving can be invested with discipline.
If he takes a home loan now, big EMI will start.
That will reduce investable surplus.
For next 15 years, majority income will go into EMI.
Rent allows freedom to pursue career changes.
EMI creates a burden if job changes or salary drops.
Liquidity vs Asset Creation
Renting keeps him more liquid and agile.
Buying gives him fixed asset but less liquidity.
Rental lifestyle fits people who may relocate.
EMI fits people with long-term settlement idea.
Young age is best for flexible investing.
Locking money in property early reduces growth chances.
Mutual funds can offer much better returns than house appreciation.
Tax Implication Perspective
Home loan gives interest deduction under Section 24.
Principal part of EMI gets 80C benefit.
But these benefits are capped and not unlimited.
Tax saving should not be main reason to take loan.
Rent also gives tax deduction via HRA if he gets it.
Mutual fund LTCG has new rules now.
Above Rs.1.25 lakh profit is taxed at 12.5%.
Still, long-term MF investment beats property returns.
Real Estate Risks to Consider
Property needs big upfront payment.
Registration, maintenance, tax, brokerage all add up.
Many new projects face delay or fraud.
House needs upkeep, legal checks and physical visits.
Selling property is tough in emergencies.
Rental income is taxable and grows slowly.
Real estate is not passive or smooth.
Many get stuck with low returns or bad properties.
Let Investments Do the Work First
Your son can focus on building portfolio first.
Mutual funds are flexible and managed by experts.
He can invest through SIP every month.
Choose regular funds through Certified Financial Planner.
Direct funds miss guidance and risk control.
Regular funds give support and periodic review.
Professional help aligns investments with life stages.
Index funds should be avoided.
They just copy market and don’t protect during falls.
Actively managed funds adjust as per market.
Better risk-adjusted performance than index funds.
Why Buying Property Early is Not Always Best
If he buys now, he commits Rs.25K to Rs.40K EMI.
That affects investment, travel, career risk, and marriage planning.
Property prices grow slowly and are not liquid.
Staying on rent gives time to explore and grow.
After 40, he can settle where he wants.
That home will then match his actual needs.
Buying now may be emotionally satisfying, but not financially optimal.
Let’s Project an Alternate Path
Let’s assume he saves Rs.35,000 monthly in mutual funds.
Over 15 years, that can become Rs.60 lakh or more.
He can then buy house in full or part-cash.
He will have more choices and peace.
No EMI. No pressure. More freedom.
Marriage, career change, travel—all remain open.
Investments create wealth silently.
House can come later with no regret.
Balance Both Viewpoints with a Middle Path
You are right to think of early ownership.
He is right to think of flexibility and liquidity.
Buying house is not bad, but timing matters.
Let him build strong base first.
Then buy house that suits lifestyle after 40.
Ask him to stay committed to SIPs.
Ask him to review financial goals yearly.
You both want the same thing—security.
But the method can be flexible and thoughtful.
What He Should Avoid at This Stage
Avoid ULIPs or money-back plans.
Avoid real estate as investment now.
Don’t rush into flat booking due to peer pressure.
Avoid direct mutual funds without expert help.
Don’t go for property loans just for tax saving.
Don’t consider annuities or bonds for now.
Don’t invest in crypto, F&O or stock tips.
Action Plan for Him
Start Rs.30,000 to Rs.40,000 SIP monthly.
Use regular mutual funds with Certified Financial Planner.
Split investments for goals like marriage, house, retirement.
Keep emergency fund of 6 months ready.
Buy term insurance of Rs.1 crore.
Get personal health insurance.
Reassess house buying at 40, not now.
Review investment progress once a year.
Let money work hard now, house can wait.
Finally
You are concerned for his security and future.
He values flexibility and growth.
House buying can wait. Investing cannot.
EMI binds the present. SIP builds the future.
A house is not always the best first asset.
First priority is wealth creation, not property.
Let his money grow before taking big liabilities.
He can buy a better house later without stress.
Both of you can be proud of this balanced choice.
Give him room to grow and support him emotionally.
Keep healthy family conversations on finances.
He is walking a thoughtful path. Let him walk it with discipline.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment