[image: http://im.rediff.com/getahead/2009/mar/10house.jpg]

* Struggling with financial decisions? Here's help*

March 10, 2009

To do or not to do, that is the big question. We are talking about making
the right financial choice even as we all grapple with questions that will
affect our finances in the short as well as in the long term.

To help you deal with the dilemma we decided to ask a few financial planning
experts to tell us what to do.

Today we present what *Priyesh Shah*, a CFP at SRE Financial Planners, has
to say about financial decisions you should or shouldn't make -- excuse us
the cliche -- in these tough times.

*1. Should you buy a house?*

Generally, house is bought not as an investment but as a primary residence
to live.

In the present scenario the property prices have reduced in several places
and a further reduction of 15 per cent to 20 per cent is expected in light
of the economic slowdown. The builders require liquidity, and, in absence of
buyers, the bargaining capacity of the builders is reducing.

You should consider buying a house for primary residence over the next 12
months.

If you have steady income you may consider home loan as the interest rates
for the home loans have reduced and are in range of 8 per cent to 12 per
cent today with the chances of falling further increasing every day

Also if your 'Asset
Allocation<http://www.rediff.com/getahead/2008/dec/12-how-rs-1000-can-bring-you-returns-in-lakhs.htm>'
allows you to invest in real estate then you may consider these times as an
opportunity and invest in a house.

*The author can be reached at [email protected].*

*
http://specials.rediff.com/getahead/2009/mar/10slide1-ten-financial-decisions-you-should-not-make-now.htm
*

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