This ₹75 lakh house hack cuts cost to just ₹49 lakh: A wealth advisor explains how

Why pay ₹1.24 crore for a ₹75 lakh house when you could cut the effective cost to just ₹49 lakh? That is the question wealth advisor A.K. Mandhan raised in a post on X, where he broke down how combining a home loan with a mutual fund Systematic Withdrawal Plan (SWP) can dramatically reduce the long-term burden of home ownership.

Mandhan illustrated the contrast between a traditional homebuyer and a financially strategic one. A conventional buyer makes a 50 percent down payment of ₹37.5 lakh and takes a ₹37.5 lakh home loan at 8 percent interest over 25 years. With an EMI of ₹28,943, the buyer ultimately pays ₹1.24 crore when the loan and down payment are combined.

In his alternative model, the “smart buyer” makes a smaller down payment of ₹15 lakh and takes a ₹60 lakh loan instead. The remaining ₹22.5 lakh is invested in mutual funds through an SWP. This investment generates monthly withdrawals of ₹18,750, which offsets part of the ₹46,415 EMI. As a result, the buyer’s actual monthly salary outflow drops to ₹27,665.

Over 25 years, Mandhan calculated, the mutual fund investment grows to approximately ₹1.05 crore. The total outgo on the house, including the loan and down payment, is ₹1.54 crore. But after accounting for the investment maturity, the effective net cost falls to ₹49 lakh—less than half of what a conventional buyer would spend.

Mandhan’s post quickly drew attention on X, sparking discussion among financial planners, investors, and aspiring homeowners. Supporters pointed to the power of compounding and disciplined withdrawals in reducing costs, while skeptics cautioned that market volatility could disrupt returns and that success depends on strict financial discipline.

At a time when rising interest rates and real estate prices are straining middle-class affordability, Mandhan’s analysis suggested that smart use of mutual funds can convert what seems like an expensive liability into a far more manageable long-term investment.