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Ramalingam Kalirajan |11198 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Sep 09, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Sep 09, 2025Hindi

Hi I am 30 year old female, until now I have not made any major investment, I stay with parent. I have liked a flat in Bangalore and I am planning to move out. My plan is to take loan of 45 lakhs for 20 years but the over all cost of flat comes around 60 lakhs. My monthly income is 94k out of which 15k goes to my parents. 6k for INSURANCE and my monthly expenses are roughly 5-6k. Yearly i contribute around 1L PPF. Please suggest that will it be good plan to purchase a flat it's a 3bhk I plan to stay and rent the flat room basis. Also I am unmarried this investment is a back bone for me in future because my dream was to own a home. Please suggest if this a good plan without any major financial burden.

Ans: You have a dream. You are acting on it. That is very powerful. Many people keep waiting. You are ready to take decisions. You are earning well. You take care of your parents. You save in PPF. You already have insurance. You think of a backbone for the future. That is wise. I appreciate your planning mindset.

Now we must assess your home buying plan in detail. We will look at your income, expenses, loan, property, and future goals. We will analyse from all sides. We will find the safest way for you.

» Your current financial position
– Your monthly income is Rs. 94,000.
– You give Rs. 15,000 to parents.
– You pay Rs. 6,000 for insurance.
– Your monthly expense is about Rs. 6,000.
– You contribute Rs. 1 lakh yearly to PPF.
– You have no major investment yet.
– You are unmarried and live with parents.
– You plan to move out and buy a flat.

» Home purchase plan
– You liked a 3 BHK flat in Bangalore.
– Cost is Rs. 60 lakhs.
– You plan a loan of Rs. 45 lakhs for 20 years.
– You will arrange Rs. 15 lakhs down payment.
– You want to live there.
– You want to rent out some rooms.
– You see this flat as a backbone for the future.
– This is your dream home.

» Loan impact
– A Rs. 45 lakh loan for 20 years will need a big EMI.
– EMI may be around Rs. 40,000 to Rs. 45,000 monthly.
– This is nearly half your income.
– You will also pay property tax, maintenance, and utilities.
– You must pay society charges, repairs, and insurance.
– Your living cost will increase after moving out.
– Your savings may reduce sharply.
– This can delay wealth creation.

» Rental plan insight
– You plan to rent rooms.
– You may get Rs. 10,000 to Rs. 15,000 per room monthly depending on location.
– Rental income is not guaranteed.
– Tenants can leave anytime.
– You may face vacancy periods.
– You must handle maintenance and tenant issues.
– You must declare rental income for tax.
– Rental yield in cities is usually 2% to 3% only.
– EMI cost is far higher than rent earned.
– Real estate rarely beats inflation with liquidity.
– You will lock a big part of your money in one asset.

» Emotional and personal goals
– You always dreamed to own a home.
– Emotional peace has value.
– It gives pride and comfort.
– A home can give security.
– But financial burden can reduce peace.
– If EMIs eat savings, you may feel trapped.
– We must balance dream and money safety.

» Risks of early home buying
– You are unmarried now.
– Your life may change after marriage.
– Your spouse may work in another city.
– Your career may move you elsewhere.
– If you shift cities, the house becomes a rental property.
– You may prefer a different location later.
– Selling a property is slow and expensive.
– Loan repayment continues even during personal changes.
– You may feel pressure during job loss or salary cut.

» Alternative wealth path
– If you invest instead of buying now, your money grows.
– Mutual funds with active management can give better liquidity and returns.
– You can build a large corpus in 7 to 10 years.
– Later, you can buy a home with higher down payment or full payment.
– You avoid long-term loan pressure.
– You stay flexible for career, marriage, and family.

» Emotional satisfaction vs financial strength
– Your heart wants a home now.
– Your mind wants safety and growth.
– Owning a home feels good but limits flexibility.
– Renting a house is not waste. It is buying flexibility.
– You can stay close to work.
– You can shift easily when life changes.
– You can invest the surplus to grow future wealth.

» Steps if you buy now
– Keep EMI within 30% of income.
– Keep emergency fund equal to 12 months of EMI plus expenses.
– Continue PPF.
– Start mutual fund SIP.
– Increase SIP every year.
– Do not stop investing because of EMI.
– Keep insurance updated.
– Avoid buying furniture or car with loans.
– Keep career growth strong to handle EMIs easily.

» Steps if you delay buying
– Save for larger down payment.
– Grow mutual fund corpus for next 5 years.
– Reassess housing needs after marriage or job shifts.
– Buy with more clarity and lesser loan.
– Keep lifestyle simple while wealth grows.

» Certified Financial Planner role
– A Certified Financial Planner can make a detailed cash flow plan.
– They check your risk tolerance.
– They project expenses, tax, and loan impact.
– They suggest safe investment mix.
– They help you protect both dream and money safety.
– This ensures no regret later.

» Finally
– You are doing very well by planning early.
– Buying a home is emotional and financial both.
– It can bring pride or pressure based on timing.
– With Rs. 94,000 income, a Rs. 45 lakh loan is heavy.
– It may be manageable if career grows, no job loss, no emergencies.
– But risk remains high for next 10 years.
– Think of flexibility, future family plans, and investment opportunities.
– Sometimes waiting a few years builds more safety and power.
– You can own your dream home with more peace and less burden.
– Discuss with a Certified Financial Planner before finalising.
– This one step of advice can save years of stress.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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