There are 5 Rules that you must follow to check how much you should stretch yourself in terms of the price of a house…

1. The price of the house should not be more than 5X your annual in-hand household income.
2/ Your monthly EMI should not be more than 35% of your net in-hand income

3/ At least 50% the price of the house you should have as savings.

4/ Out of the above savings, you should pay 35% the value of the house as downpayment, and keep 10-15% the value of the house in other liquid investments as an emergency fund.
5/ Have a medical insurance of Rs 50 lakhs minimum for your family members, and a term life insurance which is at least equal to the value of the house.

👉🏼 This means if you want to get a flat that costs Rs 1 Crore…

Your family should be earning at least Rs 25 Lakhs per annum pre-tax, and you should have Rs 50 lakhs of savings, out of which you’ll set aside Rs 35 lakhs for down payment, Rs 15 lakhs as emergency fund…

While ensuring you have a term insurance of Rs 1 crore and a medical insurance of Rs 50 lakhs.

If you can’t afford it, stay on rent till you upskill and begin earning more… and maybe when you really have to buy a house for psychological safety, think of buying something in a tier 2 city that fits your budget and that you can retire to later.