Archive · 19 Aug 2025
Advisor Warns: Buying ₹1.5 Crore Flat on ₹50 Lakh Salary Risky
If you make around ₹2.75 lakh each month after taxes, buying an expensive home could be tricky.
If you borrow money, your monthly payments (EMI) could be about ₹1.2–1.3 lakh, using up almost half your income.
Experts advise your home payment should be less than half your earnings.
Otherwise, there may not be much money left for necessities such as insurance, school fees, or savings.
It's vital to think about your income when choosing a home so you have enough money for other expenses.
Wealth advisor Alok Tiwari warns against buying a ₹1.5 crore flat with a ₹50 lakh salary.
A ₹1.5 crore home loan results in an EMI of approximately ₹1.2–1.3 lakh monthly over 20 years.
This EMI consumes almost half of the take-home income from a ₹50 lakh CTC, roughly ₹2.75 lakh monthly.
Financial norms suggest capping housing EMIs at 40% of take-home income, less than the required EMI.
Purchasing a home under these conditions risks leaving buyers 'house-rich but cash-poor'.
- Who
- Alok Tiwari, a wealth advisor, and potential Indian homebuyers.
- What
- A financial advisor cautions about the financial risks of purchasing a ₹1.5 crore flat with a ₹50 lakh salary.
- When
- Information from Knight Frank’s 2025 affordability report.
- Where
- N/A
- Why
- To highlight the financial risks associated with buying a home while overextending finances.
Financial Caution
N/A
Financial Risk
Financial Caution
Alok Tiwari cautions against buying a ₹1.5 crore flat with a ₹50 lakh salary.
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N/A
- Advisor
- Alok Tiwari
- Flat Price
- ₹1.5 crore
- Annual CTC
- ₹50 lakh
- Monthly Take-home
- ₹2.75 lakh
- Approximate EMI
- ₹1.2–1.3 lakh
- Loan Term
- 20 years
- Recommended EMI Cap
- 40% of take-home income