His family feels that he will make better use of his income if he has a long-term investment in the form of a house Sameer’s decision to buy his first house should be based on his need for it and his financial readiness to service a large commitment. Since he lives with his parents, there is no immediate need to buy a house as there will be no saving on rent involved. Therefore, it would be best for him to buy a house when he is able to evaluate his needs and proceed accordingly.Moreover, he needs to consider how he will fund the purchase of the house. It inculcates a sense of financial discipline, but with a bit of flexibility as per his needs. Real estate as an investment will be suitable for Sameer only when income and cash flows are not a constraint.

Source: Economic Times April 02, 2018 00:56 UTC