How to buy a house in Mumbai in 15 years?

Simple Maths of buying a nice flat in Mumbai.

Let’s say the Current Price of Flat is= 2Cr

Price after 15 years = 2 * 1.04 ^15 = 3.6 Cr

[ Assumption — Prices will increase at an average rate of 4%. There is a lot of solid and real evidence behind the appreciation rate being this low. Read Chapter 4 in Book Coffee Can Investing by Saurabh Mukherjea. ]

The money you have right now = 20 Lakhs
Money that you must invest monthly = 50 thousand
Hence, money that you will end up investing in a year ~= 6 lakhs
The rate at which your money must grow at = 13%

As you can see above, on the top right that you will have approx 3.6 Cr at the end of 10 years.

Tools that you need are:

• Patience
  15 years of time
• Discipline
  Keep investing via SIP in 3–4 Mutual Funds every month for 15 years.
• Frugality
  Keep Saving so that you can invest.

The worst way to buy a house?

Pay 20% as a downpayment. Take a Home Loan for the rest of 80% and then die paying EMIs for the rest of your life for a non-appreciating asset.

Cheers!