Earning a seven-figure salary is often seen as the ultimate sign of financial success. But a recent social media post has sparked a wider conversation about how even high earners are struggling to buy homes in India’s biggest cities.
Recently, Abhishek Kumar, Sebi-registered investment adviser and founder of Sahaj Money, shared the story of a 40-year-old professional earning around Rs 1.2 crore a year who still cannot afford a Rs 5 crore house in Gurgaon.
As , “Rs 1 crore salary. Still can’t afford a Rs 5 crore house in Gurgaon.”
One of the biggest misunderstandings, Kumar explained, is confusing salary with actual wealth. A high headline number does not mean that much money is available for spending or investing.
“Rs 1.2 crore annually sounds huge,” Kumar wrote, “but after taxes, maybe Rs 70 lakh actually hits the bank. That’s the number that matters.”
He added that counting gross income gives a false sense of comfort. For long-term financial planning, net income is what determines how much risk a person can truly take.
Another issue is the sharp rise in property prices, especially in cities like Gurgaon. According to Kumar,
“A basic 2BHK can cost Rs 5 crore,” he pointed out. “But a 4BHK in the same city can go up to Rs 14 crore. Same city, different universe.”
He said that today’s buyers are not just competing with fellow salaried professionals. They are up against old family wealth, NRIs and investors with far deeper pockets.
Kumar also shared a concern that many professionals in their 40s have but rarely discuss openly, i.e., job uncertainty.
“At this age and level, there’s no guarantee a job will last another 20 years,” he wrote.
Kumar described it as “financial and emotional Russian roulette”, where one job loss, medical emergency or bad year could derail everything.
The core problem, Kumar said, is not poor money management. Instead, it is the widening gap between incomes and asset prices.
“You can earn Rs 1.2 crore a year and still be priced out of the market you work in,” he said.
According to him, property prices have grown nearly three times faster than salaries over the past 15 years. This has made homeownership increasingly difficult, even for top earners.
Kumar concluded by calling this a systemic issue rather than an individual failure.
“This isn’t a personal finance problem anymore. It’s a systemic one,” he said, adding that while he hopes things improve, expectations remain low.