Cracking the Code: Pooja Patel's Expert Insights on Home Affordability

Pooja Patel shares valuable advice for potential homebuyers. It states not to purchase a house unless your salary and EMI are in sync. 

To determine your affordability, follow this simple formula shared by Pooja:

Calculate Combined Income: Start by adding your monthly salary to your partner's monthly salary.

Determine Your Maximum EMI: Multiply the total by 0.28 to find the maximum EMI you can comfortably pay.

For instance, consider Mr. Sharma, who wants to take a home loan of INR 50 lakhs at a 9% interest rate for 20 years. His EMI would amount to ₹44,986. 

If he is comfortable paying ₹53,000, he can invest the difference of ₹8,000 in mutual funds through a SIP, expecting an annualized return of 14%. After 20 years, this investment could grow to around ₹1,05,30,770.

By applying Pooja's formula, we can accurately analyse whether we can afford a house without compromising our financial stability and consider alternative investment opportunities for long-term growth. 

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A post shared by POOJA PATEL • FINANCE • MyFundSIP (@profittiger_)

Always ensure your finances align perfectly before making such an informed commitment!

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