“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.” — Maya Angelou

Indeed, a home is much more than four walls and a celling. It’s a place where you are so you. It’s a place of sanity and security. A place that’s just yours. A home is warmth and protection. It’s a place that tells hundreds of stories. It’s a place that witness years becoming decades. Its where you love and get loved by your family. It’s a place where you start from, to do great things and return too. It accepts you irrespective of success or failures. A home is a lifelong companion and is ready to welcome you with open arms. Its where you welcome new life and miss the gone ones too. It sees generation changing. That broken windowpane and that peeled off paint reminds you off a great celebration called as life. Indeed, what is life without your own home.

In the wake of pandemic and the unpredictability surrounding us, a home is no longer a luxury but a necessity. And when its already a necessity why not opt for the one home that you always dreamt off. Your very own “Dream Home”.

But is it as simple as it sounds? With the rising real estate prices and the urbanization of remote areas and the advent of new age infra like malls, cafes tech parks and industries, affording homes in even tier 2 & 3 towns have become next to impossible. By the time you have funds to buy that dream home the price of the property already doubles up, making it unaffordable. So, it’s basically a rat and mice chase.

Then how do you conquer this challenge. Real state prices rise from anywhere between 3% to 5% annually in domestic market. To beat this rise in the price a corpus that grows at almost double or triple the rate will be needed. Your investments should beat the returns of real estate market. So as for you to achieve your goal for dream home early and with certainty.

One of the key questions for buying a home is - Can’t I buy it through debt/home loan?

Let’s understand how a home loan works. A home loan of 70 lakh doubles itself in a mere 22 years with a 7% compounding rate. You would end up paying Rs 1.4 Crore which includes the principal and the interest.

So, a better option is to create a corpus and invest it in a goal-based plan. With a seed investment of Rs 5 lakh and a monthly investment of Rs 30K in under 10 years you will have a corpus of Rs 1 crore with a ROI of 14%. Does 14% sounds like an astronomical return?

Answer is No. It should not.

Nifty 50 returns for last 3 years are 64.29% absolute /17.98% annualized and for last 5 years 83.98% absolute /12.95% annualized while Gold ETF returns for last 3 years are 71% absolute /17.98% annualized and for last 5 years 71.19% absolute/11.34% annualized.

I am sure this now instills belief and confidence in you and also encourage you to take command of your goal for a dream house.

With a 3-way combination of “Power of Compounding”, “Asset Class Diversification” and “Financial Plan Recalibration” we at Simplifin.ai empower your journey for that dream home that you always wanted and truly deserve.

All you need is to follow 3 easy steps -