Explained: Why buying flats on hefty EMIs may not be wise
His warning has resonated with a growing set of urban investors who are beginning to question the wisdom of real estate as an income-generating asset.In fact, data from Anarock Property Consultants shows that average rental yields in metro cities like Mumbai, Delhi, and Bengaluru remain stuck between 2 and 3 percent, far lower than prevailing home loan interest rates.The traditional belief that 'property never fails' is gradually losing ground to the rise of more efficient and liquid financial instruments.Mutual funds, equities, bonds, and annuity products are increasingly being seen as superior alternatives, delivering better post-tax returns with fewer hidden costs.Real estate, by contrast, comes with its own baggage: illiquidity, legal complexities, prolonged holding periods, and mounting upkeep costs. Financial assets, on the other hand, can be aligned with one's risk profile, offer greater diversification, and are typically easier to exit.This shift is already visible in the data. According to SEBI, monthly Systematic Investment Plan (SIP) contributions crossed Rs 20,000 crore in early 2025, a strong sign of growing retail participation in market-linked assets.Young investors, in particular, are exploring SIPs, Exchange Traded Funds (ETFs), and even annuity plans as practical, hands-off wealth creators.So, is it time to rethink the ownership obsession?Despite the emotional weight attached to homeownership, financial advisors argue it's time to separate sentiment from strategy.When interest costs are high, rental yields are stagnant, and property prices offer limited upside, the dream of owning a home can quietly morph into a long-term financial liability.Kodawar puts it bluntly: 'It's time we separate emotional fulfilment from financial sense.'(Disclaimer: This article is for general informational purposes only and does not constitute financial advice. Readers are encouraged to consult a certified financial advisor before making any investment or financial decisions. The views expressed are independent and do not reflect the official position of the India Today Group.)- Ends
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