Buying a home is often sold as the ultimate marker of success. A bigger house, a better address, and a “comfortable” EMI are framed as signs that you’ve made it. But a chartered accountant is warning that this narrative can quietly backfire. According to the CA, stretching yourself to buy a Rs 90 lakh home on what feels like a solid salary can lock you into decades of financial stress and push your retirement far beyond what you ever planned.
The warning begins with the math most buyers see first. On paper, an Rs 81 lakh home loan at 9 per cent interest for 25 years appears manageable. The EMI comes to around Rs 68,000, a number that looks reasonable when compared to many urban salaries. This is often where the decision gets made, with banks and sales agents reinforcing the idea that the numbers “work.”
Maths breakdown
But the real cost of ownership does not stop at the EMI. Once property tax, monthly maintenance charges, and home insurance are added, the actual monthly outgo rises to roughly Rs 76,000. These are recurring expenses that never disappear and often increase over time. The CA points out that these hidden costs are routinely ignored when people assess affordability.
To keep this Rs 76,000 monthly burden within a safe limit of about 25 per cent of take-home pay, a household would need a gross annual income of nearly Rs 42 lakh. This figure is far higher than the income benchmarks many banks use when approving loans. The gap between what feels affordable and what is actually sustainable is where the trap begins.
The problem becomes more severe when this purchase is stretched on a household income of around Rs 30 lakh. In that scenario, the CA explains, the buyer is not just committing to a home. They are quietly giving up future wealth. Long-term investments suffer as SIPs are reduced or stopped, emergency funds stay underfunded, and compounding is sacrificed for the next 20 to 25 years.
The CA stresses that this is how a primary residence slowly turns into a financial liability. While the house may offer emotional comfort and social validation, the opportunity cost is enormous. Years that could have been spent building financial independence are instead spent servicing debt.
According to the CA, real wealth is not built by owning the walls you live in. It is built by keeping debt in check and protecting your ability to invest, grow, and eventually step away from work on your own terms. When a home purchase forces you to trade financial flexibility for long-term stress, the price paid is far higher than ₹90 lakh.
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Maths breakdown
But the real cost of ownership does not stop at the EMI. Once property tax, monthly maintenance charges, and home insurance are added, the actual monthly outgo rises to roughly Rs 76,000. These are recurring expenses that never disappear and often increase over time. The CA points out that these hidden costs are routinely ignored when people assess affordability.To keep this Rs 76,000 monthly burden within a safe limit of about 25 per cent of take-home pay, a household would need a gross annual income of nearly Rs 42 lakh. This figure is far higher than the income benchmarks many banks use when approving loans. The gap between what feels affordable and what is actually sustainable is where the trap begins.
The problem becomes more severe when this purchase is stretched on a household income of around Rs 30 lakh. In that scenario, the CA explains, the buyer is not just committing to a home. They are quietly giving up future wealth. Long-term investments suffer as SIPs are reduced or stopped, emergency funds stay underfunded, and compounding is sacrificed for the next 20 to 25 years.
The CA stresses that this is how a primary residence slowly turns into a financial liability. While the house may offer emotional comfort and social validation, the opportunity cost is enormous. Years that could have been spent building financial independence are instead spent servicing debt.
According to the CA, real wealth is not built by owning the walls you live in. It is built by keeping debt in check and protecting your ability to invest, grow, and eventually step away from work on your own terms. When a home purchase forces you to trade financial flexibility for long-term stress, the price paid is far higher than ₹90 lakh.
