Back in 2021, I was planning to buy a house in Gurgaon, India. My wife and I, we both started to filter out the neighborhood we wanted to live in. This research started with Gurgoan and very soon panned out to the entire Delhi NCR regions. You know, Noida, Greater Noida etc but soon we realized finding a dream house is not just about the location, builder or sq ft. It's about getting your finances correct.

You see, after working for 6 years and living way below our means, we have accumulated enough money to pay the down payment and were ready take a hefty bank loan. We were ready to put all of lives savings into that home. There was no limit to our excitement.

But unfortunately the 2nd wave of Covid-19 hit India and we had to put our plan on a hold.

Quick background, I work with EY as a financial consultant. On a daily basis my job is to advice my clients about which invest makes more sense and which does not and due to Covid had a chance to take a step back and think about my house purchase / investment.

I ran the numbers and did not make sense. If I were to take 80 LAKH INR loan, I would pay around 2 Cr INR to the bank at the end of 30 years.

More than 2x what I took from the BANK

Hence, I decided to look for alternatives and eventually I created a model to run different scenarios and what ifs. I wanted to understand, what would happen if I invest my 20,00,000 INR "down payment" into the stock market instead of paying it to the builder. Can I leverage the stock market and make more money with the money I already have?

And the answer was YES

For past 2 years, I am following a new strategy now where I have invested my "down payment" into not so risky mutual fund and using my disposable income to generate more wealth.

Detailed explanation in this YT Video and numbers are in this Excel Model

I highly recommend that you check out the YouTube video.

Think differently and question every default.