Bengaluru CA says buying a Rs 1 crore home without Rs 1.93 lakh monthly salary is a financial trap

Owning a home is often seen as a major life milestone, but Bengaluru-based CA Meenal Goel believes buying a house before achieving financial readiness can create long-term money stress. Sharing her thoughts on social media, Goel highlighted the gap between the dream of homeownership and the actual financial preparation required. She said many people focus on the emotional appeal of owning a house but overlook the numbers behind affordability.

"Buying a house in India without Rs 1.93 lakh monthly salary is financial suicide," Goel wrote, adding that there is a side of home buying that many people do not consider.

The 20-30-40 rule for buying a home

Goel explained that buyers should follow the 20-30-40 rule before taking on a home loan. According to this approach:

- The loan tenure should ideally be around 20 years.
- The EMI should not exceed 30% of monthly income.
- Buyers should have 40% of the home's value ready as a down payment.

She said these benchmarks can help buyers avoid stretching their finances too far while purchasing a property.

Salary needed for a Rs 50 lakh, Rs 1 crore and Rs 3 crore home

Breaking down the numbers, Goel shared the income and savings required for different property prices. For a Rs 50 lakh home, she estimated that a buyer needs a monthly salary of around Rs 96,500 along with Rs 20 lakh saved upfront. For a Rs 1 crore home, the requirement rises to approximately Rs 1.93 lakh monthly income and Rs 40 lakh in savings.

For a Rs 3 crore property, she calculated that buyers would need around Rs 5.79 lakh monthly salary and Rs 1.2 crore ready as a down payment.

Why expensive homes can become a financial burden

Goel warned that many people buying Rs 1 crore homes may not actually have the income to comfortably manage the loan. She pointed out that some buyers earning around Rs 80,000 per month end up spending nearly 70% of their income on EMIs.

According to her, such situations can leave people with no emergency fund, no investments and no financial cushion. A sudden job loss or income disruption could then make loan repayment difficult.

A home should not consume your entire financial life

Goel clarified that owning a home is not the problem. The concern is buying a property before having a strong financial foundation. "Homeownership isn't wrong. Buying before you're financially ready is," she said. She added that a house becomes a true asset only when it does not take over a person's entire financial life.

For prospective buyers, her message is simple: before chasing the dream of owning a home, it is important to check whether the home supports financial stability or becomes a burden.