Other costs Besides the home loan EMI, society maintenance charges, home insurance premium, cost of interior decoration and property tax are additional burden on your expenses. All this leads to a compromising on your Key goals. Selling may be difficult Real estate is not a very liquid asset. It usually takes a lot of time for sellers to find a buyer and realise the value of their asset. The secondary or resale market has been hit by demonetisation and restrictions on cash transactions. Tax benefits It is not wise to go overboard on tax benefits. It may reduce your taxable income but, these deductions are available after project completion and have upper limits. Even vacant houses have tax incidence now on notional rent. Lower Interest in future The home loan interest rates are declining and may go down further as inflation moderates. Further as the supply of houses increase, the demand may moderate. With availability of Input credits under GST, the flat prices may likely to moderate. Striking a balance on space For small nuclear family with no children or small kid(s), one BHK may be appropriate in metros but there is tendency to opt for 2 or even 3 BHK flats. It requires higher expenses on  maid ‘s salary, electricity bill, society charges etc. It is critical to evaluate the space requirement. In general, home loan EMIs should not exceed 40% of the monthly income. Real Estate Regulatory Authority (RERA) registered projects   If you are interested to buy a flat, it is wise to go for a RERA registered project since consumers can approach to the Real Estate regulator for grievance redressal. No Builder can offer any sale after 31^st July 2017 if they are not RERA registered. Plan for emergency situations If you are intent on buying a house, build up adequate contingency fund that you can dip into in case there is some interruption in your normal cash flow. Put this amount in a liquid fund. Further take adequate health and term life insurance cover to provide added protection to your family finance.  The cash crunch can be severe it some people are dealing with multiple loans and face job insecurity. Get ready to sell If you are under severe stress owing to housing related payments, consider selling the house and moving into a smaller, more affordable home. Renting a good option ! Some people think paying rent is a waste of money. But it makes more sense for prospective homebuyers to stay on rent rather than commiting to high EMIs. In the current scenario, It may be a better idea to stay on rent for the time being and invest the balance in equity with professional advice. This can allow you to build savings so that you are in a better position to afford suitable house later. The advantage of renting can be inferred from a comparative chart on buy vs rent in 12 major cities as published in ET wealth on 22nd of May, 2017