M25 in 2cr debt due to parents - Short version: Parents' risky plan may ruin finance

[Ranjit]

My parents want to buy a 20+ year old commercial basement for ₹60L but registering it at ₹92L to get a bigger loan in my name. The loan is sanctioned, and we'll sign the mortgage deed in 1-2 weeks. I'll be the primary borrower, and my mom will be on the title. Their plan relies on a ₹32L 'refund' from the seller, ₹60k/month rent, and selling it at ₹1.4cr in 5 years. I've run the numbers, and the best case is +₹6-26L, but the realistic case is -₹15L plus damaged credit. I need a sanity check before I sign. About me: 25M, ₹1L/month gross salary, CIBIL 770, zero existing debt, and I contribute ₹40-50k/month to my household. My parents are in their 50s, have ₹0 liquid savings, and their business and income generate ₹25-20k/month profit. Both have CIBIL below 650. We've already sunk ₹5-6L into renovating the basement. The property is a commercial basement in a saturated Vyapar Kendra. The actual price is ₹60L, but it's registered at ₹92L. The current rental potential is ₹40-60k/month. The loan structure is ₹92L, 20 years, 9.5% interest, and ₹85,750/month EMI. Their plan is to use the loan to buy the property, get a ₹32L refund from the seller, and repay the loan. Then, they'll rent it out and sell it in 5 years. I think this plan falls apart because the exit price is unrealistic, the prepayment trick has problems, the ₹32L refund has zero protection, and the tenant has zero commitment. I'm worried about hidden costs like extra stamp duty and capital gains tax. The realistic scenario I'm staring at is a 5-year cash bleed of ₹12-15L from my salary, and I might end up with a net loss of ₹10L to ₹15L. If I default, my CIBIL will drop to sub-500 for 7+ years.

[Ananya]

Just say no... this will haunt you for the next 20 years.

[Saloni]

Your parents' plan sounds extremely foolish and financially illiterate. You, on the other hand, have done a thorough analysis. I'm shocked you're even considering this. You must back off from this deal right now.

[Rekha]

Congratulations for getting messed up.

[Naresh]

This is their desperate attempt to have retirement money. They want to get it on your mother's name. I've seen similar stories where parents have zero savings, get a bank loan in the son's name, and the property is in the mother's name. The son ends up paying the EMI for 20-30 years.

[Daksha]

It's super rare to see parents who want to screw their kids. OP, this is pure insanity and arrogance from your parents.

[Sahil]

Why not take a basic ₹60L loan and keep the place on rent for a reliable business? Why inflate the registration? Which city is this in? And why would anyone buy it for ₹1.4cr? Take a smaller loan and don't do this.

[Rupali]

A major portion of this decision relies on blind trust in a third person. When it comes to money, even your family ditches you. Putting ₹1 crore in FD gives you almost the same returns over your timeline, and it's guaranteed. You'll be tied to this property for 20 years, and 85% of your monthly income will go into this. Say it out loud and save your life.

[Monica]

Some parents literally just use their kids for their self-gains and when things go south, play the victim. Maintain healthy boundaries.

[Nisha]

These are gold digger parents.

[Deepika]

You're getting screwed. Why do your parents want to take an extra ₹32L loan, take back cash from the seller, and use it to repay the loan again? Why not just take a ₹60L loan in the first place?