Originally Posted by realacres

Well, I think on following lines:-

If the price seems good to you & you can buy without compromising your current lifestyle & savings, go ahead & buy. Issue kicks in when people buy with loan for 20-25 yrs, with 85-90% loan without considering expenses post marriage, kids, retirement incomes, holidays etc. While buying a house, one needs to think bare minimum for 10 yrs.

My take:-

>> Loan should not be more than 40% of the property value (60% is bare min for downpayment),

>> Home loan EMIs should not be more than 30%, max 35% of your take home income based on 12-13% interest rates to be on safer side, no teaser rates here,

>> Loan duration should be max to max 10 yrs.

If these conditions are met, go ahead & buy irrespective of time. I am of the opinion that if one can but a Merc, one should buy one rather than buying a Laura & investing balance amount. If you can do something with ease, go ahead...if you want to buy a go_ld jewelry, buy one without thinking what the price of go_ld would be tomorrow. Not everything can be seen from the point of loss & profit.....there are some PLEASURES in life which can't be calculated based on money .

Enjoy life, without over-leveraging.....as simple as that .