Is Buying Property in Your Early 30s a Smart Investment Move? Redditor's Dilemma Sparks Debate
A 32-year-old Redditor's decision to buy property with a home loan in his early 30s has sparked a heated debate. Experts weigh in on the emotional and financial implications of such a move.
Real EstateInvestmentEarly 30sHome LoanFinancial AdviceReal Estate NewsJul 11, 2025
A Redditor recently shared his dilemma about using his ₹34 lakh savings and ₹5 lakh Public Provident Fund (PPF) corpus to buy a ₹60–70 lakh property on the outskirts of Bengaluru or Mysuru, an idea strongly pushed by his father. The plan would require taking a home loan to cover the remaining amount.
"My dad wants to buy a property for me. By buy, I mean he wants to use my money and take a home loan in my name to purchase a property. And he’s already looking at locations on the outskirts of Bangalore and Mysore, in the ₹60–70 lakh range. He doesn’t want to discuss it. It seems like the decision is already made," he wrote.
While acknowledging that his finances are modest but stable, the Redditor questioned whether real estate is truly a good investment, especially when the property isn’t intended to generate rental income. He noted the often-overlooked costs of homeownership, EMI interest, taxes, maintenance, legal fees, and liquidity challenges. “Even optimistic estimates peg real estate returns at 10%, but after all these costs, I suspect the real return is closer to 6%, maybe even less,” he wrote.
He compared this with fixed deposits and mutual funds, which offer similar or better returns with lower risk and greater liquidity, “with almost no effort, and mutual funds or hybrid investments that could yield 9–10% annually with lower risk and greater liquidity.”
Experts recommend that buyers in their late 30s use a mix of savings and a home loan to fund their property purchase. Suresh Sadagopan, a financial advisor, highlighted the importance of aligning a home purchase with one’s life stage, career plans, and actual usage of the property.
He noted that many people are tempted to buy more affordable homes in distant suburbs, like choosing a ₹80 lakh flat in Virar over a ₹2.5 crore home in Andheri. However, this strategy doesn’t always pay off, especially for buyers in their late 30s or early 40s. He agreed that for individuals in their early 30s, like the Redditor, maintaining career flexibility is crucial. At 33, many professionals are still exploring opportunities and may need to relocate. In such cases, committing to a property far from one’s workplace can turn into a financial burden.
“If you’re not going to live in the property and are still paying EMIs, it defeats the purpose. You’re locking yourself into a financial commitment without enjoying the benefits,” he said. On the other hand, financially secure individuals in their late 30s or 40s may be better positioned to invest in real estate.
“At that stage, people often have a larger corpus and can fund 50% of the purchase from savings while taking a loan for the rest. That’s a sounder financial strategy,” say experts. “Relying heavily on a home loan too early can create long-term financial stress.”
Beyond EMIs, big-ticket homes involve several out-of-pocket expenses, such as stamp duty, registration charges, interior work, and broker fees, most of which offer no returns and can’t be recovered later. Sadagopan advises buyers not to stretch their budgets too thin trying to set up everything at once. “You don’t need to do it all in the first few months. Spread out furnishing and interiors over two to three years. Rushing into expenses only adds to financial pressure,” he said.
Frequently Asked Questions
When is the best time to buy property?
The best time to buy property depends on your financial situation, career stability, and life stage. Late 30s to 40s are often ideal as you have a larger savings corpus and can manage a home loan more effectively.
What are the hidden costs of buying a property?
Hidden costs include stamp duty, registration charges, legal fees, interior work, and maintenance. These can add up and significantly impact your budget.
Are mutual funds a better investment than real estate?
Mutual funds can offer better returns with lower risk and greater liquidity compared to real estate. However, the best investment depends on your financial goals and risk tolerance.
How does a home loan affect your financial health?
A home loan can create long-term financial stress, especially if you take on a large loan early in your career. It’s important to balance your loan repayment with other financial goals.
What should you consider before buying a property in your early 30s?
Before buying a property in your early 30s, consider your career flexibility, financial stability, and the actual need for the property. It’s also important to weigh the long-term financial implications.
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