Hello all #LEO Lovers and #Hive Friends
When we start earning we put one step towards the financial freedom in our life. The initial moto of our earning is to make money for ourselves and when we got marriage their are some extra responsibility come upto us. Now it's not only me it's us and her us is family. Financial decision in our life play an important role as they decide the future of our financial life. One good decision make us more wealth and one wrong decision brings the reason for heavy looser some time. So always make the decision after thoroughly study the impact of that decision and also the risk involved. A calculator risk is acceptable no doubt in this.
Before my marriage I was living away form mu family because of the job. I got good job in a town which is approximately 1500 km form my native place. After marriage also were were living their. In the first few years I was hopeful that I will get the transfer near to my native place and that was the reason I was not able to take two big financial ecision of my life. The first was purchasing a house and another was purchasing a four wheeler. In both case if I got tranfer to another city both were comes with some additional burden on me. In case of purchasing a house or I say flat, I may get the satisfaction of living in my own house but their was a risk that if I got transferred then what to do with that property? I may have two choices one is to sell the property and another one is to rent the property.
Anyway after so many attempts when I was not able to get the transfer I decided to purchase a flat which was a under construction property. Actually it was not even under construction, it was yet to start construction property. The builder purchased the land and was going to start the construction work in few weeks. One of my known person only shown me the project so I make upu mind and started the formalities for a home loan. Of course I was not in a financial position that I can purchase a flat with the help of financial support from a bank in terms of loan i.e. home loan.
Here the one difficult was that the bank can provide the loan upto 80% of the flat agreement value. Now the 20% of agreement value was the money I have to make arrangements. The best option for me was to use the provident fund in my account. As per rules I can take 100% of my share from the PF for the purchase of home. I decided to takeout all of my share form PF. Here I come to know that I have to pay tax on the amount I withdraw form the PF account as my PF account was not old enough to get the tax benefit. I do some research and come to know that the number of year and months I competed in previous company and the PF account I hold their will also count towards the total number of year. But the only requirement was that I must transferred the PF number or PF amount form my previous employers. And I have seen that most of people in India when they switch the job they usually take out the amount and open a fresh new PF account with new employer. But fortunately I have not gone through that mentality and gety PF account transferred to new employer. I must say that was very good decision taken by me and it saved a good amount of money. After some more formalities I purchased that flat and started paying the monthly installment. The one good of under construction property is that you starts paying the installment in full even you have make the payment to builder less form the bank as they are construction linked plan.
I am happpy that I purchased that flat and also taken care of transferring my PF account to new employer also. The good decision makes us happy and provide the financial help also.
This is my participation post for Initiative: September Monthly Prompt
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