Need some advice because I'm really confused about a big financial decision.
We're a family of four – me (29), my elder brother (32) and our parents. Both of us are unmarried and work in IT, earning about ₹1.3 L per month each.
We currently live in a 3BHK flat in Gurgaon. According to market estimates, it could fetch around ₹2.15‑₹2.25 Cr.
Financial situation:
* Home loan: originally ₹45 L, we've already paid ₹10 L, outstanding is ~₹32 L (we both pay EMIs)
* Loan from relatives: ~₹35 L
* Parents' savings: ~₹32 L (kept mainly for our marriages)
So total debt is about ₹67 L.
Context: We moved from a Tier‑2 city to Gurgaon a few years ago, which in hindsight wasn't the best financial move. My father had a well‑running doctorate practice there, but shifting here cut his income a lot. Right now his practice just covers rent plus a bit extra, and my parents are slowly dipping into their savings. We split household expenses three ways – me, my brother and parents together.
Now I feel we're cash‑tight. Most of our salaries go into EMIs, SIPs, loan repayments and regular expenses, leaving very little real liquidity.
I think the flat has already hit its peak price (10‑year‑old society, Gurgaon market looks saturated for this segment, could be wrong though).
If we sell the flat:
* Sale value ~₹2.2 Cr
* Clear total debt (~₹67 L)
* Add parents' ₹32 L
We'd end up with roughly ₹1.85 Cr liquid.
Then we could move to a rented 4BHK (₹50‑60 k per month), which seems manageable given our combined income. This would:
* Make us completely debt‑free
* Give my parents financial freedom (no stress, maybe even retire, travel, enjoy life)
* Give us liquidity and flexibility
But the big dilemma: Is it a bad idea to give up owning a house and move to rent?
I know culturally in India, owning property is considered super important, but financially I'm not sure if holding onto this flat (with debt + low liquidity) makes more sense than freeing up cash and reducing stress.
Are we missing something obvious here?
Clear the loan, it's better.
Big businessmen can afford to default, but we ordinary folks can't. Pay it off and live peacefully.
For every extra ₹20 L you ask, the pool of buyers shrinks. Getting that amount could be tough.
It's a big decision, so take your time before deciding.
Re‑evaluate the flat's value. An older flat won't command the same price as a new one. Buyers usually prefer a new society unless you give a decent discount.
The ₹2.2 Cr sale will attract capital gains tax, so make sure you've factored that in.
My suggestion is to hold onto the house. Buying another property at today's prices will be near impossible. Instead, look for ways to boost your income, trim expenses and save more.
Your rent will keep rising each year, while your home‑loan EMI stays the same.
Your debt is manageable compared to the family's total monthly income. The relatives can wait, and your EMIs aren't much higher than the rent you'd pay if you moved out.
Hold off until the marriages; one of the brothers may want to live on his own, and then the family won't need a bigger house for now.
The real issue is cash‑flow – paying off the loans each month leaves little for discretionary spend, so you don't feel affluent. Tough it out a bit longer and the debt will clear without having to speculate about selling at a peak.
Don't sell. You won't be able to buy back at this price. Use half of your parents' savings to clear the relatives' loan and the other half for the bank loan. The remaining ₹19 L home loan and ₹19 L mortgage (total ₹38 L) can be repaid gradually. For the wedding, a simple temple ceremony with a modest evening dinner and DJ at a four‑star hotel is enough – the bride's family can cover any extra costs. You both earn well; after marriage you can shift to a rented flat nearby.
Isn't your home‑loan EMI already below ₹60 k a month? Why are you still paying rent?
From what you've described, the decision seems short‑sighted, with little thought for the future. Ask yourself – will both brothers stay bachelors forever? If not, a joint property may be the worst choice. Consider selling and buying two separate flats or houses for each brother; you can still share a rented place until marriage and rent out the new flats. If it were an independent house, the logic would be different, but a shared flat is risky.
Also, is this the total of your family's assets, or do you have property back in your hometown or ancestral village?