Strong reasons why the house should not be our primary investment.
There are various reasons why people should avoid buying a home as their first investment. When people start a job, they may desire to invest their earnings. Some people choose to invest it in gold, while others immediately want to buy a home or property. In this essay, I'd want to discuss why we shouldn't buy a home as our first investment. Any investment should provide profits that we can claim. Some may argue that the rent we get from a property is claimable income. Still, by liquidating, I mean that there should be an option to convert the property to cash or liquid money right now. This can be difficult to do with a house or land. When we try to get rid of anything, we may end up losing money since we did not wait for the value to appreciate.
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When we first start investing, it is critical to choose a prudent investment as well as one that will provide us with the best returns. A new house's EMI may be greater than for other types of investments. There are other investing alternatives available that require only a modest amount of money each month, and as our income increases, we can transition to larger investments. So it is not the ideal thing to do if we are just starting to generate money.
Only after a few months of EMI payments will we understand that a significant portion of our wages go toward home loan EMIs, preventing us from saving money for other purposes. We may not even have enough money to cover our emergency expenses. If the monthly rent we pay is roughly similar to the EMI value, we should consider buying a home rather than renting. Otherwise, this is something that should be pondered about.