Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

To keep up with rising cost we are beginning to see the equity of our home for what it truly is, Its becoming hard for us seniors not to ask the obvious question: Should we cash in, invest the money, and rent?

In finance, here's one and only person, whom i can blindly trust ... Thanks you sir very very much. 🤑🤑🤑

First time kisi video me house buying k benefits ko bataya gaya h. Mere hisab se b buying hi best h. Kyu k jitna hum rent dete h utne ki ya usse thodi upar ki emi deke agar ghar milta h to asset to create ho hi rha h. 1cr k ghar me rent pe rahne se better h 50lac k apne ghar me rehna. Bhale hi chhota hoga but apna to hoga. Old age me apke kaam aega. Or beech beech me paise jada ajaen to aap loan b jaldi khatam kar sakte ho.

I think buying a plot of land and then building home is best. My dad bought a plot in 2009 in 2015 we constructed home with 5 flats and rented 4 out of them and we live on grould floor and we earn enough rent that is sufficient enough for a standard lifestyle

The best time to buy a house is always five years ago😅

Finally someone who said the exact same thing I've been saying in almost every "rent > buy" video comment section... Try putting a price on every day spent in peace and you'd realise the importance of buying a house over renting

I listen to you like you are my big brother.♥️ There are hardly very few persons who provides so valuable content without any intention of marketing for only personal gains.

How practical and relatable explanation. All financial experts suggest is to tell us why house on rent is the wisest decision without even understanding the real motivation of owning something. We love to own house and it's exactly about the mental peace. However, we should also be prudent about opportunity cost..

You got my like just after first 1:30 min. There is nothing more worth than mental peace, Many people have a dream of owning their own house. Not everything should be put in terms of profit or loss.

Great way of explaining as always 👌🏼 keep sharing such value 🙌🏼

There are something in every single video contents in this channel, which make us stay tuned. This channel is very helpful for every single person (beginners/experts). Thanks, you help lots of people by this channel, just like a big brother.🤝

Thanks Pranjal Sir, You explained both sides so Simply! Before this I thought not to take Home but now I am clear that I will buy home

THANKS PRANJAL ur advice is really fruitful to me i got a really good knowledge abt the account opening in the bank and low expense ratio in mutual fund now this video... ur doing great buddy keep up..

U r really a good human being dear. U always give the practical information to people. Great work done.

There are couple of oversights: 1. If you are a renter, the money you can invest is half that. The other half will go into rental payment. So the return after 20 years will be offset to that extent. 2. The property prices usually rises in a developing country like India. In many cases, it could be a windfall. 3. When you are in your own house, you are rooted. Eg, school, club, etc. You are able to commit to long term arrangements, which makes many a things cheaper. Eg: Your furniture has much more life, compared to shifting every other year. 4. Being rooted to a place helps develop one's own network, it's not easy for renters, who will never be seen as part of any society. This is important for kids who crave for belongingness to their place. 5. Certain tax saving investment schemes can only be leveraged if you have a housing loan. That is a major saving, lakhs. 6. Majority of home buyers nowadays are first home buyers, who have migrated to the city. They often dispose a property in their Village for down payment for a property in the city. It makes a lot of sense, as property prices grow way faster in City and its suburbs compared to villages. 7. When you buy a house, there is a small support the society gives. Eg, friends and relatives give interest free loans, gifts, sponsoring, house warming presents, everything adds up. In fact many use it as an opportunity to milk their parents and parents in law :( 8. Majority of people live in their own house, and as City grows, there is a possibility of building one more storey and renting it out, additional income! 9. For a lot people who have income as black money, and those who do not pay taxes, (which is sadly more than tax payers in India,) buying a house is probably the only practical option, both to make their money white and to generate a legal income. 10. Inflation is a big problem with cash reserves. Property price rise usually offsets inflation. 11. Many of our big ticket buys are to show that we have arrived, rather reached "heights." Cars, watch, whatever. Eg. Once you own a house, that's your identity and main show off, so one may not need an expensive vehicle on top of it, even if you could afford one. A luxurious house is any time a better investment than an expensive car, or gold, or gadgets. 12. Like you said, a forced investment on a house is a good option to save for youngsters who are undisciplined and has an inclination to splurge. 13. Gives emotional security, that your dwelling is taken care for life, even if you run out of all income and is in total distress

Thanks a lot for making a video on this topic. As you said buying an house is an asset but according to many financial experts buying a house and then staying in that house doesn't considered to be an asset as in case tomorrow if you need to have certain amount or cash you won't be able to sell it immediately and even if you manage to sell then where would the person living in that house go to? Thanks for posting such great video, It helps a lot🙏

Awesome explanation 👌 Keep it up brother Thanks for good content Love from Toronto, Canada 🇨🇦

My father bought a piece of land and held it for around 10 years. On selling, I calculated the return which was around 17% compound annually. We live in a sub urban city.

You are a great teacher. I have learned a tons from you

Having own house is the first most thing you need. Paying emi for unnecessary expenses is wrong. But for home is worth it. You may do any work to earn money but can't buy a home if you fall into some trouble

Pranjal Bhai, I can exactly related what you said. My entire life with my parents was in Govt quarters or in rental accommodations. I always used to dream of a house of my own. When I started job, I made sure by 35 I have my own house and my children at least stay a good part of their life in this house (Till then go to school). So its not about money. It's a lot of emotion attached to it.

Thanks for the new points that can be consider before making such decisions

Well explained. There are some areas which can give 25% appreciation and some others can't able to give 8% appreciation. Basically it depends entirely on the area and the development of facility and connectivity it is going through.

Oh my gosh! This was much needed. Thank you Pranjal 😊 💓

To own a home is an aspiration,a life long dream......is baat par koi arguement nahi banta....It is not a topic of big discussion.Hope many will agree with me.

For rented house, we also get maintenance costs, eg: taps,pipes, electric components,etc

Everyone needs one pranjal bhaiya in there life ! U just made it so easy to understand.which was never taught in our bschools even after paying lakhs

Thank you sir for make us bit more financial educated✨

I have experienced both, My childhood days were very hard, as we lived in rented house and we had to shift every 3-4 years and it was very tiresome exercise from searching a suitable flat to shift in it. I lost my father in 2008 due to cancer and those days were very hard as we faced difficulties in paying rents. Then my mother arranged money on loans and other sources such as insurance claims to buy a piece of land and we shifted to our house in 2009 july. Now I lost my mother suddenly last year due to focus, Now imagine if I lived in rented house how to live all alone in other's house without any source of income. Now I am getting some money as rental income as I own my own house.So in my view every middle class family should have a home so that they can't be homeless in difficult phases of life🙂.

moto for 2022 , AAJ kuch tufani karte hein....Rent vsTent ... 🤘🤘

Perfect Video 🔥

Couldn't resonate more to the "kaash khud ka ghar hota" dialogue from parents. But I think, the EMI factor and maintenance depends a lot on the locality and cities. Places like Bangalore have equally high Rents (2 BHKs going for 40k as well) and equally high EMI and Houses go for crores (even some 2 bhks). It becomes a tough decision when cities grow beyond inflation but the salaries don't. It feels like a better decision to save money, buy plots in remote locations till they appreciate and areas develop and then invest in building own house there. But this also comes with a cost of paying simultaneous rents and also save and also pay 100 other bills to live. Arey kare toh kya kare yaar xD

Thanks the lord sir may god bless you forever in your life these videos is so use full for younger boys'

Me video ko pause krke pehle comment kr rhi hu aapko bhut hi bda thanks aap jaise log jinhone apne life ke experience se bhut kuch sikha aur ab ye valuable knowledge aap hmare sath share krte h ye bhut bdi baat h hm jaise log jo bharat ke chote se village me baithkr dekh rhe hote h hm jaise kuwe ke medhak ko aap jaise log bahar ki duniya dikhate ho in the sense of knowledge thank you so much God bless you

Very well explained. Welldone Pranjal. God bless u always.

According to me.. If you do not have around (30% minimum)40% or more Try to delay your homebuying there is no problem.and( always keep at least 5% separate as emergency fund incase you lose your job)

I possess two houses thanks to my parents. But my father died very early (I was 17) and I have to make, renovate and organise all these assests like an unpaid intern all by myself, sacrificing my career (not to the full potential) But can assure you its a tedious job to maintain houses and will never fetch you income rather takes most of you times doing taxes, rental arrengements, plumbing, repairs, maintanence, local nuances, people throwing gargabe, people coming out of nowhere etc. Never go for owning house at early stage focus on building your career. Houses won't run out but the time will.

When you switched the sides you started contradicting the positives of First sides: 1. Rent will keep increasing too but this will be calculated and compared too 2. You wont be spending the money saved after rent because you decided to invest it 3. You wont be giving all your life because you invested huge money and with in 15 years you should be able to buy a house

Main problem is shifting rented house in every 1-2 tears😥😥 That why I want my house

A very important point you said sir: If you are not financially disciplined it's better to hook to EMI (at least you create an asset)

Slice doesn't improve your CIBIL score on the contrary decreases it. Sharing from personal experience as the credit they offer are offered as loans.

There many videos available on the same topic and I've too watched many but this is the best video indeed 👌👌

That's why I love your channel. ♥️ you tell both side buy or rent. 🤟

One of the major cost is stamp duty which is around 6-8 %

I am 29 years old and u made me realize that I m doing the right thing that I am purchasing a new house. Thanks for this video. All the love and support. Keep Growing.

REALLY GREAT LEARNING FROM YOU

I was looking fr this video, finally i got, thanks a lot sir

1st case:EMI of today will be Same after 20 year but rent will be very high on that date as compared to today

I don't agree agree with you. There is a thin line break. First 1 Cr. Flat ..rent in Mumbai close to 35 K ( runwal forest). For 1 year rent is ok for 10 years in rent ..not ok ..every year 10% hike in rent , security Deposit never come in full , changing other flat huge shifting cost ..11 month agreement , 1 month brokerage every year , every renewal with 10% rent hike ...then no freedom in rent house ..every one corner you..as you are rented other owned flat ..

Kunal bhai....thanks for enlighten us on such matters. Please keep continue to make such type of useful vedios. Tha KS bhai!

Nailed on the sweet spot. Amazing video.

Pranjal sir thank you soo much for making really awesome videos for us, i have one question - currently am planning to buy my dream house in April end - so i want your suggestions when can I withdraw my money from mutual funds so i can get max NAV values for it, currently market is going down and am not able to predict what will be the right time to get my SIP's redeemed to get max benefits.

Go for House making,, Take loan, Make your own 2 storied House in minimal amount, give ground floor as rent and stay. Year by year rent will increase, and EMI is fixed, 1time will come, when after EMI You will have an amount in your hand.

बहुत बहुत धन्यवाद। में दुविधा में था आपके vdo ने निर्णय लेने में बहुत मदद की।

Great piece of information!!📈

2 Points could have been added in favour of Buy decision,... 1. ROI is on reduced rate, means 7 % is actually 4.5 % as flat rate. 2. Tax benefit is available on Principal & Interest portion separately.

Maza aagya pranjal sir really proud of you always 😍😇❤️😘

Thanks....very knowledgeable video😊🙂

Wow ,very well explained. Thanks.

@pranjal kamra Sir Thanks a lot for such an insightful video. Could you pls suggest which mutual funds and in how much mutual funds should I invest and how much amount of money should we invest in Mutual funds. Thanks

Thanks for the video, one thing you should also discuss tax benefits in both case's. I guess rental house provide us more tax benefits.

Bhai intro was awesome 👌 Dil ko chu liya

Great sir, so happy to get your feedback

Sir , situation which you faced about having your own home same we are facing ... I belong to middle income group and my parents do not have enough funds to rent out own home ..... My landlord is also very bad but ...we can't do any thing.... I am feeling very bad for myself

I have two houses in Thane. But always wanted to have a house in proper Bombay - considering my parents moved from there in the 1970s. So since then, they have felt they moved away from Bombay. I managed to get a 2-bedder at Dadar which is around 3cr with a home loan. And like you said, it’s an emotional buy, it actually makes them happy to think that they will once again have a house in the neighbourhood where they grew up. I hope I haven’t made an atrocious monetary decision. But maybe to see my parents happy is a bigger reward than anything else. Also, hoping the construction happens soon. Possession is about five years away. Fingers crossed :)

Nice explanation...buying a house give the owner ship as well...which can't be compared...like in covid time RBI has given flexibility in paying emi, people has deferred emi for 3months as well, but many house owner asked their tenant to leave the place if not able to pay rent...

Nice video. Very nice insights.

Informative Video, quite simple and clear. Please also consider the taxation benefits in both the cases

This will be a subtle hit to Ankur Warikoo sir, and I hope to see both of these legends on one screen sometime soon.

Very nicely explained.... Keep it up.

You picked the right topic which will be haunting many people from different age groups.

You have explained it very well, but there are few flaws in this, let me explain. You said if you are living in rented house then you could save lot of money which ultimately you can invest in mutual funds and sip etc. After 15-20 years, you will get lot of money from which you can easily buy house. Agreed. But what about my age? By then I would have loose interest in buying house and enjoying life because my age would be 50+ which means I lived 75% of my life. For a common man, real enjoyment of living life is upto 35-40 max.

EMIs also get increased, whenever banks increase interest rate. Timestamp: 11:50

Sir mai ak force member hu I always saw yr vedio apne bahut kuch sikhaya hi thanks

Nice explaining and you are correct 💯

My dreams :-- First education , a job , house , bike , car ,. And all the period sip mode investment in stocks :)

U didn't tell that pressure of paying emi for home loans spoil the person mind, ability to take risk, bound to stay in a same city. If we rent we have the flexibility to switch city easily. There are lots of benefits for just stay in rented house instead of buying own

Pranjal bhai.. Bass apne logic milte hain ... Thank you

Can't believe..I subscribed you when you had around 1 lakh subscriber...and now it's around 34 lakh subscriber...and that too in a pretty short span of time...

There has always been a confusion i had, though i have moved from a small city to a metro city recently, and my whole life i have been in a owned house, so this renting concept is a bit harse on my habits of living. But the confusion is whether to buy an apartment(flat) or a house with the land, as far as i know apartments after certain years can be a depriciating house. Please expain on this. And a house with a land has its own advantages.

As Usual Good Video Sir, but you failed to cover the Highest Tax Exemption that a Salaried person can avail on a Home Loan (2 of them can avail if Co-owned) and also the pros & cons of PreClosure of Loans

Great video man 💯💯

How can someone be so balanced and unbiased 😲

In my personal opinion buy a small house or shop as you are paying for down payment and avoid taking loans. As you grow then buy another house or shop and keep on doing based on your capacity. In short: ‘Jitni chadar hai utna pair felaao’

One Good thing about rent is You can move anywhere! ! To the city. To any indian village or Even USA. Having a minimalist lifestyle is great mind peace ✌️

Luv u sir.. good content.. ❤️❤️

Not sure about different metros but in Kolkata, rent increases @10% per year. Rent is also similar in a locality. So, moving to another property doesn’t work. Also, location matters because of child’s school and work places. Shifting also includes costs and hassle. On the other hand, salary doesn’t increase consistently. And EMI normally reduces. If not a luxury, owning a house or flat is better here. And property value normally increases @7-8% here. Not sure about other cities.

One more benefit of home loan is that you can save tax. The interest you pay gets compensated by the tax you save for that 15-20 years

Best way: Till 35 rent and invest in Equity Then by own house

Thanks

you. nailed the topic

You're too good. Class apart from other financial advisors. Thank you for your content. @Pranjal

you forgot to mention about tax benefits of a home loan......that is also a big factor

Aap se hume bahut kuchh shikhaya uske leye tq so much bhai

you can shoot the motivational videos, bcz your voice, presentation is very engaging..... Thank you for this video 😊

Please note. Many people mention that in case of home loan, we can reduce the tenure by paying one extra EMI every year. But nobody ever explained how to do that. I mean ...do we simply need to pay one extra EMI each year or we need to confirm something from the bank before making the payment. I think many people have very little knowledge about this concept and how to do this. I request you to kindly make a detailed video on the subject because you are the only one I can trust and you explain everything very simply. Thanks for spreading awareness.

Ur explanation of maintenance is kinda incorrect. In apartments the maintenance cost depends on ur property area and that is separate than the additional house maintenance for interiors, equipment etc. Also, in tier 2 & 3, cities the rent are quite close to the EMIs. Definitely ur point is right for Tier 1 where rent is lower than EMI.

Thank You 🙌🏻

Thank you so much 👍