Hi everyone, I’m a recent graduate currently pursuing my MBA and need some financial advice regarding buying a property. We are stuck in a debate between buying an independent house versus a flat, and I'd love your insights.
Here is our current financial snapshot:
Father's Income: ₹1.3 Lakhs/month (Post-tax, Government Employee)
Time to Retirement: 8 years of service left
Savings: ₹7.5 Lakhs in cash (Not much financial awareness/investments)
Existing Debt: ₹44,000/month Personal Loan EMI (Will be cleared in about 1 year)
Existing Assets: No property in our current city. We do have a 300-350 gaj (sq yards) plot and a 140 gaj house back in our hometown. Not Looking to Sell.
Other Factors: My father has some health complications, so unpredictable medical needs are a reality.
We are currently looking to buy a house in our city, but we have two very different perspectives:
Parents' Choice: Independent House
Cost: ₹60L – ₹75L for 150-200 sq yards.
The Catch: To fit this budget, we have to look 4-5 kms away in the city outskirts, and the spaces are quite congested.
Their Reasoning: They prefer having land value. They are hesitant about apartments because they believe it's harder to get a Loan Against Property (LAP) in case of emergencies, there's no real "land" asset for the future, and there are lifelong maintenance costs.
My Suggestion: An Apartment
Cost: ₹40L – ₹45L.
My Reasoning: It is much more affordable and realistic given my father's age and impending retirement. Taking on a huge ₹70L+ debt right now seems incredibly risky. Buying an apartment allows us to live rent-free while keeping our EMI burden low. It also leaves financial breathing room in case I need funds for higher studies, and avoids the stress of managing a standalone house on the outskirts given my dad's health.
My Questions for the Sub:
Is my thought process financially sound, or are my parents' concerns regarding apartments (lack of loan facility, no land appreciation, maintenance costs) valid enough to push for an independent house?
Given my father's remaining service years and current EMI, how should we approach this?
Are there any better alternatives we aren't considering?
Please share your experiences and expertise. Thank you!
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