What is the Minimum Salary to Buy a House?

With 6 LPA, it seemed that I could never afford a house but my friend explained that I could. The minimum salary to afford a house mainly depends on your location and the type of house you want. However, if you earn 20 to 30% of the lowest-priced property in your area, you can buy a property. 

Before planning to purchase, also consider whether you will avail of a home loan or not. If yes, your burden will be quite less.

What should be the Minimum Yearly Income to Buy a House?

Your minimum income to buy a home should be 20-30% of the lowest available flat in your area. For example, in Delhi, the lowest flat available starts at Rs 20 to Rs 25 lakhs. So you must have a salary of Rs (30%of 2500000) = Rs. 750,000 or Rs (20%of 2500000) = Rs. 500,000. You can avail of a home loan to afford your house more easily. 

The minimum income to purchase a home depends on where you belong. So let me share the city list along with their lowest-priced property starting price here:

Some other factors that you should consider are:

• Where you want to buy your property

• The complexity of the project

• Amenities you want to have within your property or near it

• Interest rate and your credit score to avail of a home loan

• Your other financial commitments and others

So best of luck with your house purchase. 

Read More:

I earn Rs 50,000 per month now and I really wish to have a house of my own. I tried to know what must be the average salary to buy a house in India but did not get any proper answer. A friend of mine suggested I first plan what type of house I want, how much can it cost and other aspects. So let me answer what is the minimum salary to buy a house and what factors can affect the buying process. Read this answer to get an idea about the entire process thoroughly. 

There are certain factors that you must consider before buying a house like

• In which state/city you want to have the house

• Your debts and monthly expenses

• What type of a house do you want- 2 BHK, 3 BHK or 4 BHK

• Decide whether you want a lavish house or just a simple house

• You want to avail a loan or not and more

Buying a house after availing a loan is the safest option. The banks scrutinise all the property documents thoroughly and you can be sure that you will face no such serious problem in the future. That is what I did. I have an account in ICICI bank so I went to them and asked if I am to take Rs 30,00,000 as a loan, what will be my EMI? Let me cite mine as an example to help you understand how much salary you must have to buy a house

Suppose the 

• Loan Amount is Rs 3000000

• Interest Rate is 7.60 p.a

• Tenure is 30 years

My monthly EMI will come to Rs 28,752 per month (you can calculate your EMI for free using NoBroker’s EMI calculator as I did).

If my salary is Rs 50,000 and I am to give Rs 28,752 from it, my remaining balance will be Rs. 21,248. Since my husband also works and earns a good sum of money, I can manage with Rs 21,248 easily. 

You must do the calculation yourself and decide whether you want to buy a house or not and also how well can you manage with the remaining amount. You can increase or decrease the loan amount or the tenure as per your requirements. I hope you have understood there is no such required average salary to buy a house.