Archive · 20 Sep 2025
House Hack: Reduce Home Costs Using Mutual Funds, SWP Strategy
Imagine you want to buy a house, but it seems too expensive.
A financial expert, A.K. Mandhan, shared a clever idea.
Instead of paying a big down payment and taking a large loan, you can use a smaller down payment, a bigger loan, and invest some money in a special type of fund.
This fund pays you a little bit each month.
This monthly money helps pay off the loan.
Over time, this method could make the house much more affordable, costing less than half of what a regular buyer pays.
This idea is getting a lot of attention because it helps people manage high house prices and interest rates.
A wealth advisor shared a strategy to reduce the cost of a ₹75 lakh house to ₹49 lakh.
The method involves a smaller down payment and a home loan, with the remaining funds invested in mutual funds.
Monthly withdrawals from the mutual fund offset part of the EMI.
The investment grows over 25 years, potentially reducing the net cost.
The post gained attention, sparking discussion among financial planners and potential homeowners.
- Who
- Wealth advisor A.K. Mandhan
- What
- Described a method to reduce homeownership costs using mutual funds.
- When
- Article does not state the exact date.
- Where
- X (formerly Twitter)
- Why
- To show how mutual funds and SWP can make homeownership more affordable.
- Original House Price
- ₹75 lakh
- Conventional Buyer Outlay
- ₹1.24 crore
- Smart Buyer's Loan
- ₹60 lakh
- Smart Buyer Down Payment
- ₹15 lakh
- Smart Buyer's Effective Cost
- ₹49 lakh
- Interest Rate
- 8%
- Loan Term
- 25 years