Home loan

1/3rd is subjective, base it according to your expenses and goals.

Also interest rates currently are quite high, it might be better taking a shorter term loan (<= 10y).

Also, also, do not purchase an "under construction" "possession soon" project. Builders are absolute scum. Do full research before committing. Get a feel of the area as well by renting for a year or so.

I guess you will get an awesome house in 2cr .
Think about a long term prospects too.

Is your salary greater than 300000?

I registered my new property in Jan for 2.5cr. 80% of it was financed and my EMI was around 50% of my monthly take home. Key points you should keep in mind.

1. If you are buying for yourself, focus on what will give you happiness. It is ok to pay more for a location of your preference, or for the brand value of the builder, or for extra sqft. No property is perfect so be very clear about what you are getting and what you are willing to compromise. After all, you will end up with this choice for a long time

2. I quit my job 6m in, so things were hard. I had spoken to a financial planner who was strictly against me buying. He gave me an example of an Amazon executive who lost his job but had EMI commitments h couldn’t meet. Long story short - life is unpredictable and make sure you can plan for all eventualities, however remote. You need to have your emergencies sorted, and give your self time to come back into the game

3. Interest rates don’t matter as much since they will get corrected very fast. Focus on pre payment within a timeframe of 6-9 years or lesser.

Bought a house around 2.5 years ago. Got possession around 6 months back.

Did an initial down payment of 10%.

At the time of purchase, it was 30% of the monthly salary. Now, it has gone down below <20%.

One important suggestion my ex-boss gave me was to be okay with an EMI which might be a little tough at the moment (up to 35-40% of monthly salary). In the next 2 years, you'll feel comfortable and it turns out to be a better decision.

30% of your net income as EMIs sounds fine but be aware that this 40% should be including any other EMIs you have today or you may be taking on in recent years. Of course your salary will likely increase in further as well but plan accordingly.

I invested in a house almost 1.5 year back and will get possession in next 2 months. For the house + interiors, the EMI is right now around 15% of the takehome salary of my spouse and mine put together and will be around 30-32% post possession . We are ok with it. Our only criteria was to buy a house where we could see ourselves for next 20-25 years (so buying a 4bhk although 3bhk is enough right now) from a reputed builder (we are first-time home buyers, so didn't have expertise on purchasing right house) and having amenities that we couldn't trade-off on (open space, garden etc).

We were hesitant at that point, since post-possession EMI alone (excluding interiors) was coming to ~35%-40% at that time. But my uncle gave a great advice which made us take that final step - "Your salary will keep increasing while EMI will remain the same". Over the last 1.5 year, that proved to be accurate as we moved to better jobs with increased pay.

I am not saying buy things that you can't afford or over-pay, but keep in mind that EMI will be constant for the duration of loan while your salary will ideally keep increasing

Do you see a need for going above 2 Cr+ ? I know metros have lots of fancy options nowadays. Plus in 2 Cr, you can get a BRANDED house, atleast in luru/hyd/ggn. You can spend rest of the money planning other experiences in life.

Also, carefull while signing loan terms. HDFC and Sbi, too many charges included in their agreement.

General rule of them,

5x of net in hand can be something you can think off.

EMI should ideally be 25-30% of net household income.

There are additional 20-30% cost over builder price so be carefull when you want to upgrade.