Buying a home. What should I advice my friends?

We are a group of 4, one of our friends is in a big confusion.

Not a simple, a huge one including lakhs of rupees.

His present condition:
Just 20 Years old, supports his mother
His present house has been badly constructed, week foundation but his land is on road-side
They have to take a loan if they are going to buy (30 Lakhs, may be)
Hez still studying, final year engineering, but has been placed in a good company
He has no siblings

What he says:
A few years later his family wont even be able to think of buying a new flat because the rates will probably double in 4 years
Anyhow, it will take 3 years for the flat to complete, so by then probably he can manage the expense
If he doesent buy now, instead buys after say, 3 years, by the time he settles, all the good flats would have been sold out. (the area he is planning to buy is currently under lot of develoments, many)

What I think
Hez taking a huge risk. What if all doesent go as planned.

Cochin, India

Globally, Real Estate is a good investment.

You think he's taking a huge risk, but basing it on "what if all doesn't go as planned" which isn't exactly basing your concerns on anything concrete.

Sounds like he's in on the ground floor of a good investment that will appreciate in value within 3 to 4 years. What is wrong with that?

The answers post by the user, for information only, does not guarantee the right.

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