How much do you need to earn to buy a flat on installments?

Don't just look at the monthly figure

Every ad shows the monthly installment because it's the smallest number. On our studio it's Rs. 57,750. But twice a year there's a half-yearly payment of Rs. 144,375 as well, and that's the one that catches people out.

So here's a simple trick. Add up a full year of payments and divide by twelve. That's what you really need to put aside every month, even in the months when nothing extra is due.

The real monthly cost of each apartment

• Studio: Rs. 57,750 a month on paper, but about Rs. 81,813 a month once the half-yearly payments are spread across the year.
• One Bed: Rs. 74,250 a month on paper, but about Rs. 105,188 a month once the half-yearly payments are spread across the year.
• Two Bed: Rs. 117,250 a month on paper, but about Rs. 166,104 a month once the half-yearly payments are spread across the year.

Plan your budget around the second number. If you set it aside every month, the half-yearly payment is already sitting there when it's due.

So what income is comfortable?

There's no official rule. A rough one many families use is to keep a fixed commitment like this under about a third of what the household brings home. By that measure, a comfortable household income would be roughly:

• Studio: around Rs. 250,000 a month
• One Bed: around Rs. 320,000 a month
• Two Bed: around Rs. 500,000 a month

Treat these as a starting point, not a verdict. A couple where both work, with no rent to pay, can stretch further. A single income with school fees and a car loan probably can't. And if you earn abroad, the same maths in dirhams or riyals usually looks a lot easier.

The lump sums you also need

On top of the installments there are four larger payments, each 10% of the price:

• Booking, when you sign up
• Confirmation, shortly after booking
• Grey structure, partway through construction
• Possession, when you get the keys

On a studio priced at 57.75 lakh, each of those is Rs. 577,500. Most buyers cover the first two from savings and plan ahead for the last two, sometimes with a committee, a yearly bonus or family help. Just know where they're coming from before you book.

Our honest advice

If the numbers only work when everything goes right, pick the smaller apartment. Late payments usually carry charges, so ask about them before you sign. It's far less stressful to pay for a studio comfortably than to chase a two bed for four years.

Send us your budget and we'll tell you plainly which unit fits it, or whether it's better to wait. Every stage of the plan is on the payment plan page, and our buyer's checklist covers the paperwork.