Hi I am currently 30 years of age and I would like to ask about an investment where I'm going to make on a flat purchase of 46 Lacs with down payment of 16 Lacs along with a loan of 30 Lacs with a current salary of 50050 rupees per month... So I would like to know the loan tenure would be best suited for me to manage my savings for the future along with my daily expenditure?
Ans: Investment Strategy for Flat Purchase
Purchasing a flat can be a significant financial decision. As a Certified Financial Planner, I appreciate your initiative in seeking advice.
Assessing Your Financial Situation
You have a salary of Rs. 50,050 per month. Your down payment is Rs. 16 lakhs. You plan to take a loan of Rs. 30 lakhs. It's crucial to balance your loan repayment with your daily expenses and savings.
Evaluating Loan Tenure
For your situation, a longer loan tenure can lower your EMI. This means more manageable monthly payments. However, this will increase the total interest paid over the loan period. A shorter loan tenure will result in higher EMIs but lower total interest.
Balancing Savings and Expenses
With your monthly salary, aim to keep your EMIs around 30-40% of your income. This ensures you have enough for daily expenses and savings. For a loan of Rs. 30 lakhs, consider a tenure of 20 years. This will make your EMIs more affordable.
Planning for Future Savings
Allocate funds for emergency savings, retirement planning, and other goals. Ensure you have at least six months of expenses saved for emergencies. Regularly review and adjust your financial plan.
Final Insights
Balancing a home loan with savings and expenses requires careful planning. Choose a loan tenure that suits your monthly cash flow. Keep your long-term financial goals in mind.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
