High EMIs: Is It a Smart Move?

Your salary will increase over 20 years and you, like everyone else (there is data to support this), pay off the loan in 7-8 years due to salary hikes. However, you don't have enough assets to justify two EMIs. There is not enough information in the post to proceed further than this.

Unless you intend to settle down in Mumbai for the rest of your life (20+ years), it does not make any sense to buy property in Mumbai. Should ideally rent out in Mumbai and buy in your hometown/planned retirement town.

This is the very definition of overcommitment and getting screwed over royally. Don’t be greedy and think rationally, if one of you are fired or unfit to work it’s game over for you.

Look at it this way, have you ever thought how are you gonna pay if you don’t have a job at all. With no savings keeping you afloat as you spend 45% of your current income on EMIs? If you’ve a good answer to that and you can manage your financial accordingly, I will say go ahead or else be honest with you and drop the plan. P.S. If you think I am being rude, I am not just trying to make your decision by telling you what most people overlook before buying. Hope this helps!

Buying in Mumbai is a woefully unfortunate choice / option for most ppl. if you can avoid it, avoid it. rent at a reasonably good place and buy a house somewhere else. Only Mumbai folks will bang thali about this shit hosiery of a city to no end. I am from Mumbai , have always been in Mumbai and i don't think the prices this place demands is worth it AT ALL.

Is spending 45% of your salary on EMI's a bad idea? We can't say for sure unless we know your salary, savings and assets. I made some assumptions below: A loan of 1.5 Cr would have an Emi of at least 1.3 lakhs. You already have another home Emi- assuming that Emi is at least 30K. So your total Emis would be = 1.6 Lakhs per month and you say this is 45% of your salary. So your in-hand salary is 3.5 lakhs. Yours is a high-earning household. That means even after paying these EMIs, you would have 1.9 lakhs left over which is a huge sum (for a middle class luxurious lifestyle). You can more than afford those EMIs.

Factor in a random layoff , Your whole equation changes. Question is the answer.

High monthly EMIs might be risky, especially if you have other financial commitments. Have you considered consulting with a financial advisor to assess your affordability and explore alternative housing options ?