A viral post about an Indian couple who skipped an expensive wedding to buy a home instead has reignited debate over whether the choice makes financial sense. It also raises a broader question for people in their late 20s planning to get married: is it the right time to invest in property, and what should they consider before taking that step?
A viral post about an Indian couple who skipped a lavish wedding to buy a home has reopened the debate on whether that choice truly makes financial sense. It also prompts a larger question for people in their late 20s planning to get married: Is this the right time to invest in property, and what factors should guide that decision?
For many young buyers, purchasing a home becomes a tug-of-war between building a ‘forced savings’ asset and preserving financial flexibility. A common pitfall is becoming house-rich but cash-poor with most savings locked into property, leaving little room for weddings, travel, emergencies, or career pivots.
Rahul and Priya Kumar, who earn a combined ₹3 lakh a month and are preparing to get married, chose a more measured approach. Rather than exhausting their ₹40 lakh savings on a down payment and taking on a large EMI, they decided to rent and invest. Keeping their finances liquid, they parked their capital in diversified mutual funds and set aside a six-month emergency buffer.
This strategy gave them the freedom to pursue higher-growth career opportunities across cities, unencumbered by a home loan. By delaying their purchase until their incomes stabilise and their corpus grows, they hope to buy a home later without compromising their lifestyle or professional mobility.
So, for young double-income couples on the brink of marriage, does buying a home make sense or is waiting the wiser move? We take a look.
Also Read: Indian couple skipped expensive wedding and bought a house instead, even got married inside it. Watch
Financial benchmarks for first-time buyers
Real estate acts as a ‘forced savings’ for young earners and often ends up as a significant portion of their long-term assets. However, the high upfront costs and monthly EMI obligations can severely limit their liquid cash flow, which hinders their ability to fund life milestones such as marriage or restricts their career moves.
“We recommend that monthly EMIs should not exceed 30% to 35% of one’s gross monthly income to maintain lifestyle flexibility. If one wants to balance their loan and investment commitment, then we suggest them commit not more than 40% of their total net worth towards down payment to ensure they retain sufficient liquid assets for emergencies and other investment opportunities,” says Abhishek Kumar, founder of SahajMoney, a low-cost fixed-fee SEBI RIA. In fact, when buying a house at any stage, one should be very sure about their financial standing.
Avoid the house-rich, cash-poor trap
The answer to that has to consider returns on investment, capital gains in real estate, rent, etc.; hence, a lot would depend on the market cycle. Renting can outperform ownership if the difference between rent and total ownership costs yields higher returns than property appreciation in the same period.
“Couples should first secure an emergency fund which can cover at least six months of expenses and maintain a credit score above 740 to qualify for the most favourable interest rates. In fact, if you have a low credit score, it makes sense to work on your credit score to improve it before you apply for a home loan. Even a few points in interest rates can lead to lakhs in savings on interest.
“It is also essential to have at least 20% down payment ready and at least two years of stable income history to ensure that their long-term debt remains manageable,” says Kumar.
Also read:₹8 lakh per month wants to opt for a ₹4 crore ready-to-move property”> Why a Bengaluru DINK couple earning ₹8 lakh per month wants to opt for a ₹4 crore ready-to-move property
Commit to location, not just a loan
For a young couple about to get married, the first requirement is not to consider a home an investment, but a necessity. “You should only go ahead and buy if you are pretty confident that you will live in that place for at least the next 7 to 10 years. This is the most important factor because, unfortunately, if you buy a property in one place, your entire career has to revolve around that same place,” says B. Srinivasan, director and founder, Shree Sidvin Investment Advisors.
If you are not sure, you might look at another job, leave the country, or look at a different location, buying can become a trap. Before you commit, you must be sure the location is close to both offices and that you are willing to stay there long term. If you aren’t sure, it’s better to wait.
Choose logic over emotion
Money is not a joke, and a 20- or 30-year decision should never be made emotionally. You must think through your brain, not your heart. Economically, if a good property is available at a 1% or 2% rental yield, it makes immense sense to take that property on rent rather than buying it up. By paying only 2%, you can invest the remaining balance you would have paid in instalments elsewhere.
“Furthermore, you must account for the massive ‘hidden’ costs of taking possession. Between registration charges, club charges, and various permissions, the cost can be high. If those costs are high and the rent in the area is relatively low, it simply doesn’t make sense to block your capital. It is better to be logical and rational,” says Srinivasan.
There will be enough pressure and enough pain in life; don’t add to it by taking a massive emotional and financial risk before you are truly ready.
Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics