In a detailed post on X (formerly Twitter), chartered accountant Nitin Kaushik debunked one of the most common financial myths among Indian investors — that buying a second flat is a smart tax-saving and wealth-building move.
Titled “The ‘2nd Flat for Tax Saving’ Illusion,” Kaushik’s thread used a real-life example to show how this approach often results in negative cash flow and poor long-term returns. Advertisement
Math behind the myth
Kaushik shared the story of a friend who bought a second apartment in Pune worth ₹85 lakh, expecting to “save tax” and “create wealth.”
On paper, the logic seemed sound. But Kaushik broke down the numbers to reveal a different picture:
Loan EMI: ₹42,000/month → ₹5.04 lakh/year
Rental income: ₹18,000/month → ₹2.16 lakh/year
Maintenance + Property t