Buying a home has always been one of the biggest financial milestones in India, but the decision on how to fund it is becoming increasingly complex. With rising property prices, fluctuating interest rates, and expanding investment opportunities, many young buyers are questioning whether it is better to pay upfront in cash or to rely on a home loan while keeping funds invested elsewhere. A recent discussion on Reddit highlighted this dilemma, drawing a wide range of views from the community.
The Case in Question
A 28-year-old investor shared in a Reddit post that he has built a corpus of Rs 2 crore, with half of it currently parked in his bank account. As he plans to get married next year, he is considering purchasing a home worth Rs 1 crore rather than waiting for two to three years to construct his own property.
He narrowed his choices to two clear paths. The first is to purchase the property outright, avoiding any loans. The second is to make a down payment of Rs 30 lakh, finance the remaining Rs 70 lakh through a home loan, and invest another Rs 70 lakh in debt funds. He noted that this would not only protect him from the burden of EMIs but also save the Rs 20,000 he currently spends on rent.
Reddit Suggestions
The post generated a hot debate. Some users recommended looking into overdraft-linked loan products, though others clarified that such facilities are limited and may not apply to under-construction properties.
Another contributor outlined a structured approach, where the buyer takes a loan while placing the same amount in a fixed deposit. This way, the borrower is effectively paying only on the difference in loan and deposit interest, while retaining access to the principal at the end of the loan tenure.
On the other hand, a few community members favored simplicity. One user, citing their own experience, said they preferred buying outright to avoid long-term liabilities. Others argued that loans made more sense for those without strong investment portfolios, as leveraging debt could leave room for better long-term financial growth.
The Case in Question
A 28-year-old investor shared in a Reddit post that he has built a corpus of Rs 2 crore, with half of it currently parked in his bank account. As he plans to get married next year, he is considering purchasing a home worth Rs 1 crore rather than waiting for two to three years to construct his own property.
He narrowed his choices to two clear paths. The first is to purchase the property outright, avoiding any loans. The second is to make a down payment of Rs 30 lakh, finance the remaining Rs 70 lakh through a home loan, and invest another Rs 70 lakh in debt funds. He noted that this would not only protect him from the burden of EMIs but also save the Rs 20,000 he currently spends on rent.
Reddit Suggestions
The post generated a hot debate. Some users recommended looking into overdraft-linked loan products, though others clarified that such facilities are limited and may not apply to under-construction properties.
Another contributor outlined a structured approach, where the buyer takes a loan while placing the same amount in a fixed deposit. This way, the borrower is effectively paying only on the difference in loan and deposit interest, while retaining access to the principal at the end of the loan tenure.
On the other hand, a few community members favored simplicity. One user, citing their own experience, said they preferred buying outright to avoid long-term liabilities. Others argued that loans made more sense for those without strong investment portfolios, as leveraging debt could leave room for better long-term financial growth.
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