Want To Buy A House In Mumbai’s Bandra? Here’s How Much SIP You Need

SOURCE : NEW18 NEWS

Last Updated:May 05, 2025, 16:38 IST

According to experts, investing 20% of one’s annual income in SIPs and raising it by 10% each year can help one accumulate enough to buy a house in Bandra over time

In today’s challenging real estate market, buying a home in metropolitan areas has become increasingly difficult, especially in prestigious neighborhoods. For example, purchasing a house in Bandra, an upscale area of Mumbai, not only requires substantial financial resources but also meticulous long-term planning.

For individuals with limited income, opting for a systematic investment plan (SIP) in mutual funds instead of a bank loan can be a viable solution. The key question is determining the adequate SIP amount and the duration required to achieve this goal.

Financial experts suggest that investing 20 percent of one’s annual income in SIPs and increasing this amount by 10 percent each year can help reach this target.

Consider an individual with an initial annual income of Rs 1.45 lakh, who allocates 20 percent to SIPs. With a 10 percent annual increment, their income would grow to Rs 14.28 lakh in 24 years.

Initially, investing 20 percent of an annual income of Rs 1.45 lakh equates to Rs 29,000 per year, or Rs 2,416.67 per month. After 24 years, when the annual income reaches Rs 14,28,211.24, 20 percent of this income would be Rs 2,85,642.25, or Rs 23,803.52 per month.

Currently, property prices in Bandra (West), Mumbai, stand at approximately Rs 59,000 per square foot, according to Housing.com. Therefore, a 600-square-foot 2 BHK flat would cost around Rs 3.54 crore. If the SIP yields an 18 percent annual return over 24 years, it could accumulate to Rs 2.13 crore.

This substantial amount can be used as a down payment, while the remaining Rs 1.50 crore can be financed through a bank loan with manageable EMIs, bringing one closer to owning their dream home.

First Published:

May 05, 2025, 16:38 IST