So you want to buy a house? follow the 3/20/30/40 Rule!

Created by InShot:inshotapp.com/...

[@karanssh]

Thanks for this great video 3 - The max cost of the house, times your annual CTC. If you earn 10L, max cost of your house should be 30L 20 - The max tenure of the home loan 30 - Total EMI per annum should not be more than 30% of your CTC. 40 - minimum % that you must down pay for your house.

[@SUBRAMONEYPV]

Thanks for sharing!

[@brijmohanbalakrishna]

Sir am impressed.... Am a banker but you have explained it so well...Good work...

[@SUBRAMONEYPV]

Thanks and welcome

[@karthikl1982]

Agree with you that not to own a house till 50 55 .👍

[@adityatiwari4698]

Never watched your video sir. But fortunately my purchase satisfies your 3/20/30/40 rule.

[@VinitKhandelwal]

Asked for it yesterday. Already got it. Thank you!

[@baskarv90]

Been asking forever.. Wonderful video.

[@SUBRAMONEYPV]

please share it!

[@SUBRAMONEYPV]

Hope you like it! please share!

[@njworld7170]

Person earning 60 lakh/ annum no need of any formula....

[@lakshmitejas1685]

You don't know how such people live paycheck to paycheck. Also end up bankrupt too

[@fishy0581]

Thank You always for guiding us with your experience. .. Please also educate us on Rent vs Buying House ....

[@Raktabij]

Very logical calculation ...m following since long....glad ..someone is explaining ...for common man...if u remove emmotion frm practicality...its make a lot sense....just to make it faster is...increase ur income ...by any mean....

[@baskarv90]

Good one sir.. Infact preclosure is never a good choice. We do all the hadwork by paying major emi as interest in the initial 7 years of 20 year loan, and then the principal component increases much. Better to invest the surplus cash in psu/govt bonds.. Though it would be 1.5% less than home loan %, 20nyears later atleast 50% of preclosure corpus will be left. If invested in equity, then a bumper

[@sandeep7719]

This channel is for doctor to buy home😉😉 please explain for noraml middle class family for also

[@GauravSharma-mi3xm]

Agreed 👍

[@thefootballspark4115]

How bro? Just reduce the numbers as per your salary. Doctor salary was just an example

[@MrShreejoy]

Agreed. Pls Subramoney give it for normal middle class people

[@vinodu1825]

Big joke

[@sanju9743]

Agreed 😂

[@TonyStark-st1us]

Great knowledgeable information

[@kiranjoshi1000]

One of the best advice received Thank you 🙏🏻

[@SUBRAMONEYPV]

You're so welcome!

[@niteshkhetan9757]

Best advice...very practical

[@beautifullife1470]

Awesome rules sir. Thank you for giving precious advice

[@vbnandu867]

Only people who have been kicked out of rental homes know owning a simple 1bhk is better sometimea

[@aruldos48697]

If having 80 lakhs definitely will invest in good values and growth stock, will create wealth on that, where later I can buy house in ready cash.

[@prakashkumar90]

It is my dream to have an own house which is very emotional one and also I have drafted a plan post covering my Financial basics which includes enough Term insurance, Health insurance, 12 months emergency corpus, monthly SIP for Child's higher education & my retirement corpus. My numbers required for a house fits into all your rule except 40% down payment. I may need to wait more years then but from emotional stand point and the timeline I set, don't think I can wait till 40% down payment corpus being built. Well, I may take a calculated risk here since my current income flow takes care my Financial BASICS well enough.

[@pkprprempavankumar8749]

short and sweet, ji u r best at demystifying 🙏

[@sureshlalwani410]

Thank you Sir

[@pranaykundu3079]

3/20/30/40 actually doesn't make sense. Either you put a cap of 3 times your CTC and do a down payment of 40% or you take a loan for about 20years where you pay emi about 30% of gross salary and that decides your total house cost. The rule in complete makes no correlation and actually is confusing!

[@atribose5173]

I was in fact thinking about this same thing.. Not sure how if this can be logically explained...

[@varunpaliwal1860]

Great information and beautifully explained! Thank you.

[@SUBRAMONEYPV]

You are so welcome!

[@smva.n]

Beautiful message sir. Really useful. Thank you for your advice ! 🙏

[@SUBRAMONEYPV]

Thanks and welcome

[@abinashsahoo9389]

Thanks for this meaning full video 🙏

[@SUBRAMONEYPV]

Most welcome 😊

[@legoinsan]

Thank you for this video sir.

[@yusufkk3616]

Don't know to laugh or cry after watching his suggestion

[@sachinkumar-ly6cb]

Thanks sir

[@SUBRAMONEYPV]

Welcome

[@abhishekbais2928]

Thanks for the information 🙏

[@sudhansusekhar2337]

As per his context only doctors should buy house, corporate employees are not good enough...😬

[@vikram1262]

He's right

[@sudhansusekhar2337]

I don't think so...

[@vikram1262]

@@sudhansusekhar2337 the statement to type is "i don't think"

[@sudhansusekhar2337]

@@vikram1262 please consult with your English teacher, seems like you have skipped so many classes in your school

[@ankitvishwakarma5897]

Finally found meaningful rule

[@abhimanyudubey6000]

Would be wonderful to know your opinion about education loans taken by young professional's Sir

[@alexkoshy01]

Thank you sir. This was very informative.

[@SUBRAMONEYPV]

Glad it was helpful!My pleasure. Please share!

[@sandysarker]

The 40 part is tough for many

[@SUBRAMONEYPV]

this is ideal. If a parent subsidizes it may be possible. Or start with a worse ratio...and sell off some other assets and increase the contribution...

[@karthisubramaniam8055]

Thank u sir Super post

[@SUBRAMONEYPV]

Welcome

[@amitpower9455]

Subscribed🙏🏼. Dr Amit

[@SUBRAMONEYPV]

My pleasure. Please share!

[@rajatkholiya]

1980's rule need to be modified..as time changes..can't follow all thing as it is. Some points are good, some point need to strike down. Change is the law of nature.

[@vinodu1825]

If we can squeeeze those who get this much pay i think housing rates will come down its own...

[@vivekgupta1124]

The very first rule -3 will make house buying impossible in Mumbai 😀

[@harshaljoshi2784]

True

[@chahem]

Exactly

[@sachinkharshikar8850]

Somebody gives you money @7% take & invest wisely why 40% down payment when my investment earns more should take 100%loan

[@vidhantiwari3314]

Please share trend to adopt for buying a good house by a middle man..... Not for those who earns 20 lakh an year....

[@subhabratadas1625]

Should we repay the loan? During the video conflicting ideas were described. So please clarify regarding loan repayment.

[@Ammiiye]

Sir i m into my 20s... Since this November... . Is balanced advantage funds are good enough for financial independence if i will investment my 12.5 times of annual expenses... (considering my annual expenses 6 lakhs after 5 year from now) .???? Could it last for next 35 years...

[@pankaj9888741054]

Thanks for sharing! I do have one question, why max 30% EMI rule. My EMI is 50% of the income and as I kept my loan tenure to 5 years. So that my interest portion should be less. In my case I am still learning about equity market so don't want much exposure to that. Is there any other reason for 30% rule which I am missing?

[@SUBRAMONEYPV]

Good question! if you can live on 30% of your income that is fine. There are people who are confident of their investing skills - so for them rules can be different too...

[@pankaj9888741054]

@@SUBRAMONEYPV thanks Sir

[@sharabeshj1177]

Good calculation. Will be useful for my future 👍

[@PhysicsWithMeRAHULAMINsir]

60 lac salary if thay save 45lac per year and after 3 year thay buy easily 1.35 Cr House

[@Berlin-rb8tf]

Correct

[@kabirnayak9425]

I follow simple theory, my house and car shall not worth more than 5 percent of my net worth

[@mohammednausheed4989]

Then 99.9 percent ppl wont own a house in India

[@sheru9884]

🙏

[@anandraghavan7054]

I am planning to sell my flat and don't wish to re-invest in new property. To save the capital gains tax, is investing in National Highways Authority of India and Rural Electrification Corporation Limited a good option or do you think it is better to just pay the tax

[@sriram89ramakrishnan]

Sir, do you believe everyone watching your video earns 30 lac ctc?

[@SUBRAMONEYPV]

About 1000 of them surely do.

[@sriram89ramakrishnan]

@@SUBRAMONEYPV If so they will be investing in Marcellus, not watching your free video. And sir, if you know how to handle these funds, you will be a private fund manager, not a free youtube video maker. So thanks.

[@gautamchoudhury8977]

Sir talk for common people please. 60 lac/per year he or she is king 🤴for me

[@srinivascnp]

Sir I find this 30 year rule very impractical

[@daganinoel451]

sir explain how the rules is fixed.

[@chandansr]

Repay with weaker rs with inflated market.👏👌

[@lillak8059]

sir how much loan should take as per salery?

[@ArvindBhave]

What is CTC?

[@sriharans4189]

The income he mentioning is before tax or after tax

[@SUBRAMONEYPV]

before

[@anirbanghosh4341]

Good morning sir..I am 27 and working in SBI..I have a gross CTC of 10 LPA..and we get subsidised interest rates being the employee of the bank..how much can I afford to buy a flat/house..

[@mailmeabhilash]

Max 3L of loan per year. How much discount are you getting?

[@gururajvinekar8610]

Quick doubt sir 3 - does this mean that house price shouldn't be more than 3 times of the CTC or the loan amount shouldn't be more than 3 times of the CTC

[@SUBRAMONEYPV]

fine line - 3 times ctc does not work in India unless you are earning at least 75L

[@sandeep7719]

If middle class family ur rule no can buy house and build😂😂😂😂😂

[@1988pmum]

Dear Sir, I need some clarification and guidance here. If we keep 64 Lakhs in lumpsum SIP Mutual Funds for 20 years, with a 15% CAGR, it would be roughly 10.5 crores. However, if you take a home loan of 1.5 Crores on a 1.6 Crore house @ 6.75%, for 20 years the total interest would be roughly 1.24 Crores. The EMI would be 1.15 Lakhs. Also, I intend to stay in that house in 2 years. I presently pay a monthly rent of 60,000 which I will divert towards EMI. So, in net terms my EMI burden over my current housing expenses is reduced to 55,000 a month only. I assume my rent would increase at a minimum of 5% p.a throughout this 20 years. On the otherhand, if I pay 65 lakhs (40% of 1.6 Crore) and take a 95 Lakhs loan @ 6.75%, for 20 years, the total interest would roughly be 78 Lakhs. I would have saved 45 lakhs over a period of 20 years. That over a period of 20 years would be 18,750 per month. Assuming we do a SIP of that amount for 20 years @ 15% CAGR that gives us a total return of 2.5 Crores., My net difference against my present rent would go down to 12,000. That would lead to a surplus of 43000 per month (55000 - 12000) which in a SIP for 20 years @ CAGR of 15 percent gives us 5.7 Crores, In light of the above, would investing 64 Lakhs in lumpsum and paying off higher EMI not be a more economical approach?

[@debu98]

Switch your work location to some cheaper place.. And purchase land in a not so costly area, While being assured of Electricity, Water, Gas supply in that area.. Build a nice home as per your need.. That would be the best way.. Buying a 2BHK in Noida from Godrej, Tata like builders will cost you near 2 crore(Excluding Bank Interest and additional charges)..

[@Usha8199]

This video was a joke for me. Neuro surgeon with a working wife earing equally as u.. 60 lakhs per annum salary.. Wow....

[@Vengeance703]

Make video for middle class people.

[@suhasjamdar7024]

60 L per annum????

[@pinkynandi8894]

Sir i am 34yrs age I earn 1.3cr but I have a bussiness I don't pay any tax How much cost my home should be

[@dramangupta8204]

4 Crores ...... not more not less

[@thechicgirl451]

Talk for the middle class the upperclass doesnt need your advice

[@MrAnupnyk]

Can you explain the rationale behind buying house at 55? Also how should someone fund the purchase at that age?

[@mohammednausheed4989]

He is telling to save the total amount by that time. Buy it without any loan

[@rajivsingh179]

Pls 🙏

[@shaileshagrawal4914]

Can't thank you more

[@kishore3874]

60 lakhs PA. HAHAA. We live in India not USA.

[@rajivsingh179]

Honestly.. Useless👎

[@OishikSarkargplus]

This man is really rich, always taking about big figures. Hardly 20% of Indian comes in that 30-60Lakhs Annum Income group, what about others? What about other expenses, other responsibility, highly rising inflation, bank hidden charges etc? Sorry your tips are useless and doesn't belong to reality.

[@sajivarghese1662]

Thanks sir