Rs 1.3 lakh income, Rs 1.2 crore house: 29-year-old techie debates buying vs renting amid EMI trap fears and layoffs

For many young professionals in India’s IT sector, the idea of buying a home has long been seen as a milestone of stability. But with rising property prices, job uncertainty, and changing family plans, that decision is no longer straightforward. A 29-year-old tech professional recently highlighted this dilemma online, sharing how he is torn between purchasing a house and continuing to rent, especially at a time when layoffs and a shift to single-income living are real concerns.

In his post, the man explained that he currently works as a tech consultant and takes home ₹1.3 lakh per month. He is living in Hyderabad and paying ₹25,000 as monthly rent. However, his financial situation could soon become tighter as he and his wife are planning to have a baby next year. He said this would likely mean transitioning to a single-income household, as his wife may take a break from work.

He also mentioned that while he owns a house in his hometown, relocating there is not practical due to career constraints. This leaves him with a decision to either continue renting in the city or invest in a home where he currently works.

The ₹1.2 crore home plan

The techie shared that he is considering buying a flat in a gated community, with possession expected next year. The total cost of the property, including registration and interiors, comes to around ₹1.2 crore.

He has ₹45 lakh ready for a down payment and expects to save another ₹10 lakh by next year. Additionally, he holds around ₹15 lakh in gold assets.

According to his estimates, taking a loan of ₹75 lakh would mean paying an EMI of roughly ₹65,000 per month. If he decides to use his gold to reduce the loan amount, the EMI could come down to about ₹52,000.

Despite having savings in place, the man said he is unsure whether this is the right move. One of his key concerns is the cost of maintaining a home in a gated community. He pointed out that maintenance charges alone would be ₹10,000 per month, and when combined with utilities like electricity, water, and gas, his fixed expenses would rise sharply.

He admitted, “Sometimes I feel like I’m not ‘rich enough’ for a gated community and should just wait 3 more years to grow my salary.”

Fear of EMI pressure in uncertain job market

A major worry for him is the risk of taking on a long-term loan while being the sole earning member. He referred to frequent news around layoffs in the IT sector, saying the idea of committing to a 20-year EMI feels risky.

“The constant news of layoffs and instability in the IT sector is always at the back of my mind. Taking on a massive, 20-year home loan EMI while being the sole breadwinner in this current job market feels terrifying,” he wrote.

He also questioned whether his decision to avoid mutual funds and equity investments is indirectly pushing him towards real estate, as he feels fixed deposits may not keep up with inflation.

Reddit users weigh in

The post triggered a wide range of responses, with many users offering practical advice.

One user pointed out a basic affordability rule: “Your total EMI should be around 35-40% of your in-hand salary. If it is more, think about downpaying more or not purchasing it at all.”

Another suggested delaying the purchase until the financial situation improves. “Best thing you can do is postpone the purchase a bit and take when wife rejoins after the kid. That will be financially better,” the comment read, also recommending a discussion with his partner before making a final decision.

Some users flagged the maintenance cost as excessive. “10k maintenance per month is a bit on the higher side imo,” one person noted.

On the question of gold, a user advised keeping it as a safety net, saying, “Gold should be your emergency rescue imo,” especially with upcoming medical and childcare expenses.

There were also differing opinions on his reluctance to invest in equities. One user bluntly said, “No mutual funds rule is really stupid,” while others suggested considering low-cost index funds instead of completely avoiding the market.

Beyond the immediate decision, financial planners often point out that liquidity and flexibility matter just as much as asset ownership, especially in uncertain job cycles. Renting allows people to move cities or switch roles without the pressure of selling a property, which can take time and may not always fetch expected returns.

On the other hand, buying a home comes with added costs that are easy to overlook at first, such as property taxes, repair work, and furnishing expenses over time. Experts usually suggest building a clear emergency fund that can cover at least 6–12 months of expenses before taking on a large loan, so that any sudden income disruption does not immediately impact day-to-day living.