How to Pay for a Home: My Options and Dilemmas

I'm thinking about buying a home in a big city and it'll cost around 90 lakhs. I've saved up half the money already, but I need help figuring out how to pay for the rest. I have a few options: Use my mutual funds and stocks: I could sell some of my investments. Take money from my PF: I could withdraw money from my provident fund. Get a home loan: I could borrow money from a bank. A combination of these: I could do a mix of these options. I'm planning to keep working for another 20 years, and I don't want to ask my family or friends for help. What do you think is the best way to go about this? Can you tell me the pros and cons of each option?

an assistant manager

5mo

Slightly unpopular opinion, but you can consider paying it without the home loan. Increase your monthly investment amount to be equivalent to the home loan EMI that you would have paid had you taken the loan. It’s always peaceful to live without any loans on your head.

importantscorpion

5mo

works at

Info Edge

Home loan. Take tax benefits. Prepay some amount every year to close it faster.

an assistant manager

5mo

user 2

Pay upfront most of the money by pulling mf. But I would suggest a HL around 5-10 lakhs (as banks check the property documents thoroughly). Then start the investment with high amount every month why i am suggesting- the market is already in good condition and upward trend will not be as high as last 5 years. Secondly investment returns are not guaranteed but emi s are always guaranteed.

a team lead

5mo

Take a home loan.. I wouldn't suggest pulling money from MF it'll affect the compounding effect. You can always pre-pay it with any of the methods which you mentioned. Rest up to you.

hrterminator

3mo

currently not working

What's your risk tolerance, and how comfortable are you with debt ?

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