Abhishek Kumar in Hindustan Times

Abhishek Kumar said buyers should check how a new loan fits their budget and other goals such as retirement, and read prepayment and foreclosure terms so they can clear the debt early if their income rises.

Abhishek Kumar explained that the gift to the wife is not taxed, but under the clubbing rules any rent or later capital gains from the property count as the husband's income for tax.

Abhishek Kumar suggested keeping EMIs within 30-35% of gross income and using no more than 40% of net worth for a down payment. He also advised building a six-month emergency fund and a good credit score first.

Abhishek Kumar explained that property returns depend heavily on location while commodity returns move with demand and sentiment. He said REITs can offer real estate exposure, with an allocation of around 10 per cent.

Abhishek Kumar said banks were expected to pass on the cut through lower home loan rates, helping first-time and mid-income buyers. He cautioned buyers to keep an emergency fund covering six months or more, hold total EMIs under 40% of income and avoid overstretching their budget.

Abhishek Kumar suggested that couples of any family type put retirement saving ahead of an early home purchase and buy only if they expect to stay at least five years. He added that buying can help families who need stability or face sharply rising rents.

Abhishek Kumar suggested that prospective home loan borrowers compare rates across lenders and weigh a fixed-rate loan as protection against higher interest if the repo rate climbs later.

Abhishek Kumar explained that an existing home loan carries over to the new flat after redevelopment, so a fresh loan agreement is not required.

Abhishek Kumar said developers might keep the tax savings to protect their margins instead of cutting prices for buyers.

Abhishek Kumar cautioned that even if indirect taxes come down, developers may keep the savings to protect their margins instead of passing them on to homebuyers through lower prices.

Abhishek Kumar said even small additional principal payments can save a lot of interest over time. He suggested raising EMIs by 5-10% a year as income grows, if affordable, and moving the loan to a cheaper lender after counting all associated costs.

Abhishek Kumar pointed out that buyers facing a delayed flat are stuck between paying the home loan EMI and, in many cases, rent for where they live now.

Abhishek Kumar explained the arithmetic behind the Mumbai figure, using household spending, savings rates and home prices, and pointed out that affordable housing supply has shrunk across major cities.

Abhishek Kumar explained that with lower rates a borrower can take a larger loan for the same EMI. He cautioned that undecided buyers should not decide on rates alone, since floating rates can rise, and should check they can afford the EMI through different cycles.

Abhishek Kumar cautioned buyers to look at the stability of their income given the risk of a slowdown and job losses, because a home purchase ties you in for many years.

Abhishek Kumar said delaying a sale into early April eases cash flow for transaction taxes, allows advance tax to be paid in four instalments from June, and gives an extra year to deposit proceeds in a Capital Gains Account Scheme.

Abhishek Kumar pointed out that one couple's planned EMI would take about 38% of their monthly income, above the 30% guide for housing costs, and suggested they first build an emergency fund of six to 12 months of expenses.

Abhishek Kumar suggested estimating monthly expenses and total assets and weighing costs against one's means before deciding. For a retiree with a pension, he said upfront payments would need savings, making tier-2 options workable but metro homes harder.

Abhishek Kumar said people earning up to ₹12 lakh a year would keep about ₹80,000 more each year under the new tax slabs.