RIDDLES used to fascinate us in school.

Well, I remembered one of them on June 24 when RBI raised the repo rate by 50 basis points (0.5 per cent): What goes up but never comes down?

There's a grim answer for that one, these days: Interest rates!

Banks have been increasing interest rates on home loans, over the last one year. Initially they did it subtly. But now, they are not so restrained. This surely isn't helping the cause of those who want to take a home loan.

Read: How to buy a house @ age 25

wealth did a quick poll and asked readers if they would still take a home loan, despite rising interest rates. The verdict as on June 25, 4.30 pm:

• 46 per cent would wait for the rates to fall before they borrowed.
• 8 per cent would take a loan but choose the fixed rate option.
• 23 per cent would opt for the floating rate loan.
• 23 per cent admitted to being clueless!

Vote and view the latest results!

Well, here's what the experts recommend.

Say no to property as investment
If you plan to take a loan to buy a house just as an investment, it's never a good idea. "Buying a property for the sole purpose of investment is nothing but speculation. And, it is never a good idea to take a loan to do that," says DK Joshi, Principle Economist with CRISIL, a credit rating organisation.

Read: Rishabh bought a home. Here's what went wrong!

Photograph: Jeff Haynes/Getty

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