Home Loan - Time to Think again

Home Loan- Time to Think again :-

 "HOME SWEET HOME"    is first item or must have item in everyone's wishlist. All of us wish to have a HOME. When we start thinking about the buying a House, the first think blows our mind is "HOME LOAN".

Now a days Bank and other financial agency are after us to provide the home loans. Because they are earning huge amount from these product.
The below calculation for Home loan will blows your mind and enforce to Think again before going for Home Loan.

In this example the Loan amount is 50 Lakh at interest of 10% for 20 yrs,
the total amount including interest after 20 yr will be 1.15 CRORE. The EMI will be 48000.
Yes we are paying around 65 Lakh as interest in 20yrs .

The Big Question  :- Is it worth to spend 48000 every month for a property which have a depreciated cost as well.

Let me tell you what we can do with these 48000 INR. We can pay house rent of around 20,000-  25,000 INR in good society  and rest amount we can invest for future.  

Suppose if we invest 10000 INR in PPF for 15 year, then we will get around 37.4 lakh after 15 year. Put the 37.4 Lakh into fixed deposit for 5 yr which will grows to 54.9 lakh. 

Also if we invest 5000 INR every month in RD for 20yr, then we will get 28.6 Lakh after 20yr. 

In total buy investing  15000 every month we will get a sum of  83.5 Lakh after 20 yr.

we still have 8000 INR left, which we can save for "World Tour" another Item in everyone's wish list. 

I am not saying that we shouldn't buy Home , but  its "Time to think again for Home Loan "

                                                               

           

Summer the Vacation

 what Wikipedia says about summer (https://en.wikipedia.org/wiki/Summer)  :-

Summer is the hottest of the four temperate seasons, falling between spring and autumn. At the summer solstice, the days are longest and the nights are shortest, with day-length decreasing as the season progresses after the solstice. The date of the beginning of summer varies according to climate, tradition and culture, but when it is summer in the Northern Hemisphere, it is winter in the Southern Hemisphere, and vice versa.

As we hear the word  “summer”, the first thing comes in mind is summer vacation irrespective of our age. Everyone start floating in their dream vacation and most of us  ended up with visiting to our relatives.

In India we got our training of Project Management like Risk analysis (playing outside till afternoon everyday and using  same mitigation “kal se time per aaonga” ),  Budget Planning (using  Bat and Ball to extreme to their limit and a big hop on wining the Prize money of daily matches) and Resource Management (managing our the cricket team with a single Bat, single ball  and 10 brick)  in our childhood itself .

Tips for Baniyapanthi

To beat the summer this season :-

khao Ganna (sugarcane) piyo AAM Panna.

forget about  cherrapunji and have some Shikanji