Homeownership Dream: Apply These 2 Rules to See if You Can Afford a New House

• Owning a home is a common dream, but rising costs and slow income growth make it challenging.
• The 5-20-30-50 rule helps assess financial capacity for buying a house.
• House price should not exceed five times annual income; loan tenure ideally not over 20 years.
• Monthly EMI should not exceed 30% of income, and total EMIs for all loans not over 50% of income.
• The 50-30-20 budget rule allocates income for needs (50%), wants (30%), and savings/debt (20%).