25-year-old employee earning Rs 3.3L lakhs a month asks: Buy home in Mumbai or invest first?

Purchasing property, especially in a metro city, can feel like navigating a maze. Skyrocketing prices, limited options in popular neighbourhoods, and the rising cost of construction make it daunting for new or previous buyers. Even with a decent income, the thought of managing hefty down payments, EMIs, and additional costs such as registration, maintenance, and taxes can be overwhelming. Adding to the trouble are factors such as the location, connectivity, and future resale value. For many, opting to rent seems easier, but the desire for ownership keeps growing.

Professional faces tough Mumbai homebuying decision

Along similar lines, a 25-year-old software developer from Navi Mumbai recently shared his real-life dilemma about buying a home in a detailed Reddit post. Currently earning for a family of four and working on a contractual position, he earns a monthly income of approximately Rs3.3 lakh.


According to the professional, although he owns a 2 BHK in Vadodara, he is considering buying a second property in Mumbai worth Rs 80 lakh. The man revealed that he has a savings of Rs 16 lakh with no generational wealth or family assets, which makes the decision even more difficult. The employee’s dilemma lies in the fact that if he buys a property, it would require Rs 20–25 lakh for the down payment and registration. The remaining Rs 55–60 lakh would comprise the home loan, bringing the EMI to roughly Rs 45k–Rs 55k per month.

High EMIs, savings dilemma and investment risks

Additionally, with the combined amount of his existing EMI of Rs 25k for the Vadodara home, the total monthly obligation would range from Rs 70k to Rs 80k. While buying a second home would secure the property price, allowing him to start building equity earlier, it would also deplete most of his savings and reduce the money available for other investments. Meanwhile, investing Rs 10–12 lakh as a lump sum and contributing Rs 40k– Rs 50k per month through systematic investment plans (SIPs) over 3–5 years, could potentially raise his monetary savings to Rs 50–60 lakh.

Investing would also aid in the process of a much larger down payment later, easing the burden of EMIs. However, the risk factor involves the surge of property prices, contributing to uncertainty. There also remains no guarantee that he would be able to afford a similar property in the same area later. The Redditor is mindful that the property is intended primarily for end use, not just investment. He is open to renting for a few years. Being on a contract-based salary, he is equally cautious about committing to long-term financial obligations. Given his situation, most of the netizens advised him to get a permanent job first before purchasing a new property.