Let’s say you to want to buy a home in the next few years worth Rs 1 crore. You will need to account for:

  • Downpayment: An amount of 15 -12% or Rs 20 lakhs to make the down payment.
  • Income Tax Proof: that you earn enough to pay the monthly EMI’s on the balance loan of Rs 80 lakhs or about Rs 80k per month.

Most folks who want to buy a house earn enough to pay the monthly EMI of Rs 80 but don’t have Rs 20 lakhs for down payment. A SIP can help you accumulate enough money over the next 5 years to makeup the shortfall in downpayment as well.

Okay, but how ?

Assume that you have bought a house. It’s just that instead of paying a loan EMI of Rs 80, you invest that money in a monthly SIP. If you continue doing this in balanced equity fund , you can have approximately:

  • Rs 36 lakhs at the end of 3 years, or
  • Rs 68 lakhs at the end of 5 years.

Now, you not only have more money for downpayment but also have some left over for interior decorations.

But wait, what about house rent of Rs 30k that I have to pay every month ?

Yes, if you are paying house rent and cannot afford to invest Rs 80k, let’s look at the alternate scenario scenario. Rs 50k can become:

  • Rs 22 lakhs at the end of 3 years, or
  • Rs 42 lakhs at the end of 5 years.

So yes, if you want to buy in the next couple of years on a loan but don’t have the money yet, start today instead of leaving it in the bank or in an FD.


The earlier you start planning and saving AND investing for a house (instead of leaving your money in a Fixed Deposit) the LESSER you will need at the time of buying your house.
Talk to us below or call +91 96500 65242 to find out how.