Your ₹1 Crore Flat
Costs ₹1.5 Crore.
Nobody Told You.

Banks typically approve 60x your monthly net salary as a home loan. So ₹1 lakh/month salary = ~₹60 lakh loan. But approval depends on: existing EMIs (FOIR should be under 50-55%), credit score (750+ for best rates), employer category (government/PSU get higher multiples), and age (longer remaining tenure = higher loan). Don't confuse "eligible" with "affordable" — a ₹60L loan at 8.5% for 20 years means ₹52,069/month EMI. Make sure your total EMIs stay under 40% of take-home pay.

On a ₹1 Cr property, hidden costs add ₹23-50 lakh: stamp duty (5-8%), registration (1%), GST on under-construction (5%), broker commission (1-2%), legal/documentation (₹25K-50K), interior/furnishing (10-20% of property cost), home loan processing fee (0.5%), and society maintenance deposit (₹1-3L). Total cost of a "₹1 Cr flat" is actually ₹1.23-1.50 Cr. Nobody shows you this number in the brochure.

Financially, renting + investing often wins. Indian rental yields are 2.5-3.5% — among the lowest globally. A ₹1 Cr flat generates ₹25K-30K/month rent (3% yield), while ₹1 Cr in a Nifty 50 index fund has delivered 13-15% CAGR historically. Buying makes sense if: you plan to stay 7+ years, property is in a high-appreciation area (7%+/year), you value stability over returns, or you're buying in a tier-2 city where yields are higher. It's not always about money — but know the math.

Property held >24 months: LTCG at 12.5% flat rate. Indexation was removed from July 2024. Exception: properties bought before July 23, 2024 can use 20% with indexation if it gives a lower tax. Property held <24 months: STCG at your income tax slab rate. Section 54 exemption: reinvest capital gains in a new residential property within 2 years (or construct within 3 years). Cap on Section 54: ₹10 Cr from April 2023.

RERA (Real Estate Regulation and Development Act, 2016) requires: all projects >500 sq.m. to register, builders to deposit 70% of buyer money in escrow, carpet area-based pricing (no super built-up fraud), 5-year structural defect warranty, and penalties for delayed possession. Check your state RERA website for project registration status. RERA helps but doesn't prevent delays — it gives you legal recourse. Always buy RERA-registered projects and verify the RERA number independently.

Ready-to-move: no GST, see exactly what you're buying, immediate possession, no delay risk. Under-construction: 5% GST (non-refundable), 2-5 year delay risk (common even post-RERA), builder default risk, but 10-20% cheaper on paper. The "savings" on under-construction often disappear when you add GST + rent during waiting period + EMI on disbursed amount. Buy under-construction only from established builders with a track record of on-time delivery.

Old regime only: Section 24(b) — up to ₹2 lakh deduction on home loan interest for self-occupied property. Section 80C — up to ₹1.5 lakh deduction on principal repayment. New regime: ZERO deduction for self-occupied property. For let-out (rented) property: full interest is deductible against rental income in BOTH regimes. If you chose the new regime (most people should for salary <₹15L), your home loan gives you no tax benefit on self-occupied property.

Section 54 lets you avoid LTCG tax on property sale if you reinvest the capital gains in a new residential house. Rules: buy new house within 1 year before or 2 years after sale, or construct within 3 years. Cap: ₹10 Cr (from April 2023). Must hold new property for 3 years, else exemption is reversed. You can also deposit gains in a Capital Gains Account Scheme (CGAS) if you haven't found a new property before ITR filing deadline. Only for residential property to residential property.