1. Home Loan Method (Buying via EMI)
Current house value: Rs 50,00,000
20% Down Payment: Rs 10,00,000
Loan amount (Principal): Rs 40,00,000
Tenure: 15 years (180 months)
Interest rate: 8.5% per year
Monthly EMI: Rs 39,390
Total interest paid in 15 years: Rs 30,90,200 (Around Rs 30.90 lakh)
Total cost after 15 years: Rs 80,90,200 (Down payment Rs 10 lakh + EMI Rs 70.90 lakh)
Final property value (at 5% annual growth): Around Rs 1.04 crore
2. Mutual Fund SIP Method
Initial cost / Down payment: Nil (Rs 0)
Investment period: 15 years (180 months)
Expected average return: 13% CAGR
Monthly investment: Rs 18,900
Total investment paid in 15 years: Rs 34,02,000 (Around Rs 34.02 lakh)
Compound interest profit: Around Rs 66,00,000 (Rs 66 lakh)
Total maturity amount after 15 years: Around Rs 1,00,02,000 (Rs 1 crore)
10% Step-up SIP (Increasing investment by 10% yearly) starting amount: Rs 11,200
Total maturity amount after 15 years: Around Rs 1,00,00,000 (Rs 1 crore)