Hi all,
At chennai, housing sector at its peek. Sq ft shooted just from Rs 1800 to 2800 in main areas. In the area I am living its from 1400 to 2300 right today. One year back I bought a car (Palio) thinking that I cannot afford a house now (EMI would br around Rs 16000) because various other family commitments. Hmmm...I wrong.
Following is the reason.
1. Got a car Loan for 2 lacs and paying Rs 5000 as EMI.
2. Spending on petrol Rs 2 to 3k per month. So my total expense due to car is Rs 7.5K.
If I had booked new house 1 year back,the cost the house would 15 lacs and 2 lacs for registration etc which I have to bear. I could have taken a personal loan for 2 lacs and housing loan for 15 lacs.
The EMI I am paying for car loan, I would have paid for personal loan. The money I am spending on petrol I could have used it for pre-EMI.
Still if I need a car I could have gone for early 90 model maruti and lived modestly. My inlaws were saying that they will buy a car for me, but my ego didn't let it to happen and bought a Palio.
By next year I would have occupied the house and saved TAX around Rs 6000 per month and Rent Rs 6000. My company would have paid Rs 4150 as housing loan allowance. So my net saving is Rs 16000. So I will spending nothing for housing loan.
Right now for the samehouse cost Rs 25 lacs. I could have saved 8 lacs. I could have bought a new Palio 1.6 sports/Getz/Fiesta or my lovely OHC Vetc 2002 model for Rs 5 lacs. If I get a new car my company would have paid me Rs 1300 as car loan allowance (no allowance for 2nd hand car). My monthly EMI on car would be just 6000. Petrol charges extra which I could have managed because my salary has gone up by then
What a short sightedness
Guys, please console me
