The flat costs ₹1.25 crore and the rent is ₹35,000 a month. Yearly rent is 3.4% of the price. In 2026, gross yields in the big cities are usually about 2% to 4%.
The loan is 80% of the price, for 20 years, at 8.25%. The repo rate is 5.50% from 7 October 2026. SBI’s home-loan card, from 15 October 2026, runs from 7.50% to 8.80%. HDFC Bank’s floating rates start near 8%. 8.25% sits inside that range. It is not the teaser rate.
House prices rise at 6% a year. NHB RESIDEX, the 50-city index, rose by about 4.5% to 7.5% a year from early 2025 to mid-2026. Rent also rises at 6%, so the yield stays flat unless you split the two rates.
Mutual funds grow at 12% a year before tax. The Nifty 50 total-return index made about 12.4% a year over the 20 years to 27 February 2026, and about 12.7% a year since November 1995. That is history, not a promise.
Maintenance starts at 0.6% of the price you pay. On this flat that is about ₹6,250 a month, then it rises with 5% inflation. A mid-range society bill is often about ₹3 to ₹8 per square foot a month. The bill does not jump just because the flat’s market price did.
Property tax starts at 0.15% of the price, about ₹18,750 in year one, and rises with the same inflation. City taxes differ widely. Type your actual bill if you know it.
Stamp duty and registration are 7% of the price. Delhi charges a man 6% stamp duty plus 1% registration. Most large states land between 5% and 8% once cess and registration are included. Selling costs are 1% brokerage.
The page opens at 20 years, the same length as the loan. A 30-year result is much larger in future rupees, because 12% compounding has another decade to run. The big number on the page is in today’s money, using 5% inflation. The RBI’s inflation target is 4%.
Tax on listed-equity gains is 12.5% above ₹1.25 lakh in the year you sell. The house pays 12.5% on the gain after two years, with no increase in the purchase price for inflation. A sale inside two years is taxed at your slab plus 4% cess. Home-loan interest is deductible only in the old regime, and only up to ₹2 lakh a year on a home you live in. The page starts in the new regime, which does not allow that deduction. Principal under section 80C is not counted. That ₹1.5 lakh limit is usually already used.