Hello I'm 28 years old , my in hand salary is 60k per month , I have an sip of 6k per month and I have expenses to approx 35k per month , I want to build a house , is it viable to take a home loan now or try to build a better financial profile and then try after wards
Ans: You are 28 years old with a monthly salary of Rs.?60,000. Your current SIP is Rs.?6,000 per month, and your monthly expenses total around Rs.?35,000. You want to build a house and are weighing whether to take a home loan now or wait to strengthen your financial position first. Let us look at this from every angle and create a strong, step?by?step plan for your financial goals.
Current Financial Overview
Age: 28 years
Salary (in?hand): Rs.?60,000 per month
Expenses: Rs.?35,000 monthly
SIP: Rs.?6,000 monthly
Balance: About Rs.?19,000 saving each month
No mention of investments beyond SIP or insurance coverage
You are in a stable position. No loans right now. This gives you a strong starting point to work towards building a home and enhancing your overall financial resilience.
Define Your Goals and Timeline
You have two main goals:
Build a house (self?occupied or investment?)
Improve financial profile (income, liabilities, saving capacity)
Key questions to consider:
When do you want the house? In 2–5 years? Or longer?
Will the house also generate rental income in future?
How much down payment do you have today or plan to save?
Are you open to increasing SIPs or adding income streams?
Having clarity here helps in charting a path that matches both priorities.
Evaluate Home Loan Viability Now
A home loan may appear tempting. But you must consider:
EMI on Rs.?30 lakh over 20 years at ~8% interest comes to ~Rs.?25,000 monthly.
That would eat into your Rs.?19,000 surplus and push your outflow beyond comfort.
You'll also need 10–20% down payment and extra costs at purchase.
Loan EMI adds financial leverage, limiting future flexibility.
This means taking a loan now might stretch your budget and savings too thin. A strong financial profile before borrowing is a safer path.
Steps to Build a Stronger Financial Profile
Use the next 1–2 years to strengthen your foundation.
Increase your SIP significantly: Move from Rs.?6,000 to Rs.?15,000–20,000 as your earnings rise.
Control expenses: Keep lifestyle growth modest; maintain a disciplined saving mindset.
Add liquidity: Build an emergency fund of 6 months’ expenses: Rs.?2–2.5 lakhs in liquid funds.
Get insurance in place: Ensure you have adequate term life and health cover.
Focus on career and income growth: Explore higher?pay roles, promotions or side income.
Take home-building knowledge: Plan for construction costs, permissions, contractors, etc.
By focusing on these steps, you’ll be ready financially when it’s time to borrow.
Investment Strategy to Support Your Goals
With rising surplus in future, invest strategically:
Equity-Based SIP: Add actively managed diversified MFs. This can support growth.
Hybrid Funds: Add stability and reduce volatility around loan timings.
Liquid or Short-Term Funds: Use for deposits and emergency cash.
Avoid index funds: They offer no active protection or management.
Use regular plans through MFD?CFP: Get guided monthly tracking and rebalancing.
This mix balances growth with liquidity as you aim to afford a home.
Creating a Home Purchase Timeline
Once your profile is stronger, you can plan for a loan.
Example path:
Year 1: buffer to Rs.?2.5 lakhs
Year 2: raise SIP to Rs.?15,000–20,000 monthly
By Year 3–4: build down payment of Rs.?5–10 lakhs
Post-Year 4: apply for home loan with 20–25% down payment; EMI manageable
This phased approach keeps your finances stable and stress-free.
Why Postponing Loan Helps You Now
Lower interest burden: Bigger down payment reduces loan amount and EMI.
Better loan terms: Improved income and credit profile help get lower interest rates.
Safety cushion: Emergency fund keeps you safe in any financial stress.
Goal alignment: Investments can grow until house need arises.
Avoid leverage fatigue: Builds confidence and clarity before taking debt.
All of these strengthen your loan eligibility and reduce long?term risk.
After Loan – Asset Allocation & Management
Post?loan, you can shift investment surplus gradually into:
Retirement planning: Consider PPF, NPS, and funds focused on long?term growth
Children’s education or future goals
House maintenance and future needs
Remember to rebalance annually and monitor fund performance via a CFP.
Tax and Insurance – Do Not Ignore
While planning for home loan:
Term insurance: Typically 15–20x your current salary if you have dependents
Health insurance: Cover for self and immediate family
Tax benefits: You can claim Section 80C and 24b deductions under loan repayment
Loan interest tax benefit: Helps reduce effective EMI cost
Insurance and tax planning protect your home loan plan and your family’s welfare.
Avoid Common Mistakes
Do not stretch EMI just because you can afford it
Do not divert SIP savings into loan repayment
Avoid jumping into direct mutual funds or index?only portfolios
Stay away from luxury expenses during loan period
These actions maintain balance and prevent financial stress.
Annual Review and Rebalancing
Every year, do a financial health check:
Evaluate your emergency fund and liquidity
Track SIP, MF, PPF, insurance, and debt profile
Adjust SIP amounts after salary hike
Ensure EMI remains manageable
Keep your goals aligned: home, retirement, lifestyle
Rebalance portfolio as needed with CFP support
This ensures your actions stay aligned with evolving goals and context.
Final Insights
You are in a stable position with no liabilities. Now focus on:
Strengthening your financial foundation
Building buffer, investments, and earning capacity
Keeping expenses in check
Setting clear timeline and target for home purchase
Ensuring proper insurance and tax planning
Once you have built a cushion and SIP discipline, you can take a home loan comfortably. Until then, strengthen profile and wealth sustainably. This ensures building a house remains a joyful, manageable experience.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment