Salary Guide for Home Buyers and Renters – What You Need to Know

Thinking about a new place but not sure if your paycheck can cover it? You’re not alone. Many people wonder how much income they really need before they start looking at listings. The good news is you can break it down into simple steps and avoid guessing.

How to Calculate What You Can Afford

The first rule of thumb many advisors use is the 30% rule: aim to spend no more than 30% of your monthly gross salary on rent or mortgage payments. If you earn 80,000 ₹ per year, that’s about 6,600 ₹ a month for housing. Keep in mind the rule is a guide, not a law. If you have debt, children, or other big expenses, you might want a lower percentage.

Next, add the extra costs that come with a home. For a purchase, factor in down‑payment, stamp duty, registration fees, and moving costs. For a rental, think about security deposit, utility bills, and sometimes a broker’s fee. Write these numbers down and compare them to your net income after taxes. Seeing everything on paper helps you spot hidden gaps.

Salary Benchmarks for Different Property Types

In cities like Mumbai, a 2BHK can range from 60 Lakhs to 2 Crore depending on the area. To comfortably afford a 1 Crore flat, most buyers need at least 20‑25 Lakhs of annual income, assuming a 20% down‑payment and a 7‑year loan at current rates. If you’re renting a 2BHK in a mid‑range neighborhood, expect to pay around 30,000‑45,000 ₹ per month, which translates to a required salary of roughly 10‑12 Lakhs per year.

For commercial properties, the numbers shift. A small office that costs 1 Crore in rent requires a business revenue of at least 6‑8 Crore a year to keep the rent under the 30% threshold. Use the same percentage rule, but replace personal salary with business turnover.

Don’t forget bonuses and side‑hustles. If you receive an annual bonus, you can count a portion of it toward your housing budget, but treat it as extra cash, not a guaranteed salary. Many lenders only consider the base salary when approving loans.

Finally, run the numbers through an online affordability calculator or talk to a financial advisor. A quick check can tell you if you need to save more, look for a smaller property, or consider a joint purchase.

Bottom line: match your salary to the full cost of living in a home, not just the headline price. By using the 30% rule, adding all extra expenses, and checking salary benchmarks for the type of property you want, you’ll know exactly where you stand. This approach saves time, avoids disappointment, and puts you in control of your next move.