For a Bengaluru family living in their own 2BHK, upgrading to a larger home appeared to be a natural next step, particularly with two growing children, one in college and the other still in school. The need for more space is evident, and neither pricing nor location poses a challenge. Instead, concerns around job security are driving hesitation.
“I’ve identified a nice property in Bangalore. But all the doom and gloom of AI is making me scared to take a loan and finalise,” the Reddit user wrote, adding that “fear of layoffs and being unable to service EMIs is giving sleepless nights.”
Redditors say that Bengaluru has many middle-class tech professionals who are now reassessing big-ticket purchases, as fears of AI-driven restructuring and layoffs weigh on their confidence to commit to long-term EMIs.
“The thing is, the job uncertainty bites at our confidence. An emi of ₹1.8 lakhs monthly is what we will face in case we go ahead,” the prospective buyer wrote on Reddit.
EMIs, risk appetite and the 35% rule
Several Redditors advised caution, especially when buying an apartment. One user recommended a conservative approach: a 25% down payment, 1 year of EMI in an emergency fund, and ensuring monthly repayments do not exceed 35% of take-home income, especially for borrowers over 35.
“You don’t want to live your life just paying EMI. Vacations and other joys of life should also be lived,” the Redditor wrote, pointing to rising family expenses, children’s education costs and retirement planning as parallel financial priorities.
Redditors say that while Bengaluru’s residential market has seen a major uptick, affordability pressures are intensifying as property prices and home loan rates remain elevated.
‘Some risk is mandatory’
A first-time homebuyer offered a contrarian view, arguing that middle-class households will always find reasons to postpone large purchases.
“The middle class will always have reasons not to make a big-ticket purchase. There will always be a huge risk for us. We are neither rich with personal safety nets nor poor with social safety nets,” the user wrote, adding that upward mobility requires accepting a degree of calculated risk.
One Redditor cautioned that borrowers who default could face auctions in which properties may be sold below market value, with outstanding dues still recoverable from the borrower.
“Home loans only benefit two people, the builder and the bank,” the Redditor claimed, advising borrowers to plan aggressive prepayment within five to ten years if they take a loan.
Experts weigh in
Financial advisers caution that elevated home loan EMIs can quickly compress household liquidity, even for dual-income or relatively secure salaried families. According to financial planner Suresh Sadagopan, once fixed obligations push monthly surplus down to around ₹80,000 after routine living expenses, the margin for contingencies becomes uncomfortably thin.
He noted that affordability assessments on paper often fail to capture real-world volatility, medical needs, education expenses, lifestyle inflation or temporary income disruption. To remain financially stable under a high EMI structure, borrowers would need to exercise tight cash flow control, defer discretionary spending, and avoid taking on additional debt. Maintaining the monthly housing instalment meaningfully below ₹1 lakh, he said, provides far greater resilience and improves long-term financial sustainability.
Sadagopan advised that families should consistently earmark at least 10–15% of their income for long-term savings, in addition to maintaining a robust emergency corpus. Instead of rushing into a large financial commitment, he suggested strengthening the down payment through disciplined saving and reassessing the purchase at a later stage. In his view, delaying the decision can substantially reduce repayment stress.
He pointed out that homeownership is considerably more sustainable for dual-income or higher-earning households that have already accumulated a meaningful financial buffer. Buyers in such positions are often able to fund 40–50% of the property value upfront, thereby reducing the loan quantum and materially easing the monthly EMI obligation.
He explained that the job situation is crucial when making major investments, such as a home loan. “My advice is simple: don’t take on huge loans and liabilities when things are uncertain. If you do take out a loan, you must carefully assess everything in your life. Always have a Plan B. Job losses are not unusual anymore.”
(Disclaimer: This report is based on user-generated content from social media. HT.com has not independently verified the claims and does not endorse them)
