Laid-off Bengaluru techie's ₹78k EMI sparks rent-versus-buy debate on homeownership

Hindustan Times

a day ago

The story of a laid-off techie in Bengaluru has sparked debate on X about the risks of buying expensive apartments. The professional had purchased a ₹1.3 crore flat two years ago, putting down ₹50 lakh and committing to an EMI of ₹78,000 a month. After losing his job recently, his cousin, posting under the handle Wealth Whisperer, shared his financial struggles online, suggesting he sell the flat and reset his plans. A laid-off techie in Bengaluru, struggling with a
₹ 78k EMI on a
₹ 1.3 crore flat, has sparked an X debate on the risks of costly homeownership. (Representational Image)(Unsplash )
"Given the global headwinds, one should wait for some time before investing in a home loan if the person is dependent on one source of income," she told HT.com.
While homeownership offers a sense of security, steep EMIs can quickly turn into a burden when income stops. 'Monthly EMI becomes a nightmare when salary disappears,' one user wrote. Others, however, argued that property ownership still makes sense if EMIs are lower than rent, noting that unlike rent, EMIs remain fixed and do not increase every year.
Also Read: Will Bengaluru real estate market be impacted as tech layoffs impact tenants and buyers? Experts weigh in
Renting versus buying an apartment
Her post quickly struck a chord with thousands of readers who weighed in on the classic rent-versus-buy dilemma. 'Is it really worth buying costly apartments these days, or should we just rent?' the user asked, adding that while owning a home feels like security, EMIs can end up owning the buyer.
'Renting gives flexibility, buying gives stability. Question is, what do we value most in today's economy,' the user asked.
One user argued that property ownership still makes sense if EMIs are lower than comparable rent. 'You will, in any case, rent if you don't own. But unlike rent, EMI won't go up every year,' the commenter noted, while advising the family to consider selling the flat and moving to a Tier II city where costs are lower and homeownership more attainable.
Others took a harder look at the risks of leveraged buying. 'The harsh reality of leveraged property purchases during uncertain times! Monthly EMI becomes a nightmare when income disappears,' another user wrote. They suggested a temporary moratorium from the bank, selling family gold to reduce the loan burden, and searching for a new job within six to seven months.
Several voices echoed the view that Indian metros are increasingly unaffordable for middle-class buyers. 'Metros are now out of hand for a while. Sell the flat, shift, and invest in a Tier II city,' one commenter said, stressing that lifestyle and cost of living could balance out even if salaries are lower.
The conversation also highlighted a broader financial lesson: the importance of emergency funds in cushioning the shock of layoffs and unexpected income disruptions. As one commenter summed it up, 'Dream homes can wait. Savings for survival can't.'
Also Read: TCS layoffs: Will job cuts in the tech sector trigger a real estate downturn in Bengaluru?
No safeguards in home EMIs in case of job losses, say financial experts
Financial advisors say the case reflects a broader gap in how buyers prepare for long-term liabilities like home loans. 'Mainstream insurances may cover one to three months of EMIs, but there are no safeguards against layoffs,' explained Suresh Sadhgopan, a financial advisor. 'Borrowing money is a contract, the bank is looking for money back. If someone is laid off, they still have to pay.'
Sadhgopan emphasized that anyone taking a home loan should maintain a liquidity buffer. 'For a major borrowing like a home loan, it's critical to keep a six-month to one-year corpus that can be liquidated in emergencies. That cushion makes it easier to manage shocks like job loss. Without it, there is very little room to manoeuvre.'
He said that industry turbulence, especially in IT, makes such planning even more vital. 'For young professionals, it makes a lot of sense to stay on rent until the age of 35–38 and build a stronger financial base. Heavy loans and liabilities should be avoided when job markets are uncertain. Always have a plan B. Job losses are no longer unusual.'
Professionals should set aside six months to a year's worth of EMIs as a buffer for home loan repayments, say experts
Experts said that today the IT industry is turbulent, but that's also true for most industries. 'The simplest rule is that every borrower should be able to secure six months of EMIs as backup. For people in senior positions, or in industries where re-employment may take longer, keeping a one-year buffer is even more important,' Sadhgopan said.
He explained that the job situation is crucial when one is making heavy investments like a home loan. 'My advice is simple: don't take on huge loans and liabilities when things are uncertain. If you do go for a loan, you must assess everything in your life carefully. Always have a Plan B. Job losses are not unusual anymore.'
Bengaluru's housing sector dependent on IT headwinds, say experts
Several tech firms have rolled out large-scale layoffs to rein in costs and streamline operations. At the same time, the rapid adoption of automation and artificial intelligence is reshaping the IT job market, with demand shifting toward niche skills in emerging technologies. While this transition is creating opportunities in advanced tech, experts note that hiring for traditional IT roles has slowed.
According to Vestian Research, the IT-ITeS sector accounted for 40% of all real estate leasing in the city in 2024, highlighting its heavy dependence on the tech industry. With global tech firms continuing to announce layoffs, a decline in hiring and rising job losses could trigger a chain reaction, delaying home buying and rental demand, experts say.