Business
How Costly A House Should You Buy & How Much EMI Is Best? The 5-20-3-40 Formula Will Guide You

For most people, the dream of buying a house goes hand in hand with the fear of overwhelming debt. Home loans may have made ownership easier, but many buyers still struggle with questions of affordability: How expensive should the house be? How much down payment is enough? How big should the loan be? To answer this, financial experts point to a simple but effective calculation: the 5-20-3-40 formula. (News18 Hindi)

This four-part rule lays out the balance between income, down payment, loan amount, and monthly installments in clear terms. It begins with the 5 percent cushion, which suggests that a buyer should always keep at least five percent of the property’s value in cash. On a Rs 50 lakh house, that comes to Rs 2.5 lakh readily available to manage initial costs or emergencies. (News18 Hindi)

The second component is the 20 percent principle, which emphasises that a buyer should ideally cover one-fifth of the home’s cost upfront, keeping the loan capped at 80 percent of the property’s price. Financial planners say this step is crucial because it reduces the interest burden and shortens the repayment period. (News18 Hindi)

The third measure, known as the 3X rule, links the value of the house to the buyer’s income. The advice is straightforward: never buy a house priced at more than three times your annual earnings. So, someone making Rs 15 lakh a year would be safe purchasing a home worth Rs 45 lakh, but stretching beyond that amount risks straining long-term finances. (News18 Hindi)

Finally comes the 40 percent ceiling, which applies to EMIs. The formula warns against committing more than 40 percent of monthly income to loan repayment. For a buyer earning Rs 1 lakh a month, the EMI should not exceed Rs 40,000. Staying within this limit ensures there is still room to manage daily expenses, savings, and unexpected costs. (News18 Hindi)

Taken together, the formula provides a realistic picture of what a person can afford. Consider an example: a professional earning Rs 15 lakh annually wishes to buy a house worth Rs 45 lakh. According to the formula, they should have Rs 2.25 lakh in cash for the initial cushion, make a down payment of Rs 9 lakh, borrow no more than Rs 36 lakh, and limit their EMI to around Rs 30,000 a month. In this case, the purchase falls comfortably within all the recommended limits, leaving the buyer financially secure while pursuing home ownership. (News18 Hindi)

Experts stress, however, that while the 5-20-3-40 formula offers a valuable framework, it should not be treated as an unbreakable law. Each household has its own financial realities, whether that includes children’s education, health care needs, or investment goals. The formula is best used as a guide, a way to set boundaries that prevent overextension, while still allowing flexibility depending on individual circumstances. (News18 Hindi)
Business
Canada threatens Jeep-maker Stellantis over proposed US move

The Canadian government has threatened legal action against global car giant Stellantis over its plans to move production of the Jeep Compass to the US.
Earlier this week, Stellantis revealed a $13bn (£9.68bn) investment in America and plans to shift manufacturing of the Compass model from Ontario to its Illinois plant.
Canada’s Industry Minister Mélanie Joly said the firm had made a “legally binding” commitment to stay in the city of Brampton in exchange for financial support, and would “exercise all options, including legal” if it did not uphold the agreement.
Stellantis has been approached for a comment.
In her letter to Stellantis chief executive Antonio Filosa, Mélanie Joly said the country had given the company “billions of dollars” and the move would jeopardise the future of its Brampton factory.
In a statement on Wednesday, Mr Filosa it was the largest investment in the company’s history, and “would drive our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home” – but did not mention its Canadian operation.
Responding to the announcement, Joly said the car maker and the Canadian government had “built a strong and enduring partnership”.
“We were there for the company in 2009 to pull it back from the brink of bankruptcy, and now we expect you to be there for Canadians,” she added.
Canada’s Prime Minister Mark Carney said the government was working with the company to protect Stellantis staff at the Brampton site and try “to create new opportunities” for them locally.
Stellantis owns 14 car brands, including Alfa Romeo, Maserati, Jeep, Fiat, Citroen, Chrysler and Dodge.
While the car maker has manufacturing plants in the US, it also produces vehicles in the UK, Europe, Canada, Mexico and South America.
In July, the company said tariffs imposed by the Trump administration had cost it $349.2m (£259.6m).
President Trump introduced car tariffs to boost the American car manufacturing industry, but within a month he eased tariffs on foreign car parts.
On Tuesday, Trump’s new 10% tariff on softwood lumber came into effect. It means products from Canada – the second largest producer globally and a major US supplier – now face levies of more than 45%.
Most Canadian producers already faced a combined 35% in US tariffs due to a long-running trade dispute between the two countries over the product.
Business
LVMH shares soar 14% on strong China demand: European luxury stocks adds $80 bn, investors cheer sector revival – The Times of India

Shares of luxury giant LVMH had their best day in over two decades on Wednesday, soaring as much as 14% after reporting stronger-than-expected quarterly sales that signalled a possible revival in Chinese demand. The rally added nearly $80 billion to the combined market value of European luxury stocks, according to Reuters report.The world’s largest luxury group, which owns Louis Vuitton, Dior, Moët, and Hennessy, posted its first quarterly sales rise this year, beating forecasts and sparking a sector-wide surge. Rivals including Hermès, Kering, Richemont, Burberry, and Moncler gained between 5% and 9% as investors cheered signs that the industry may be pulling out of its two-year slump.“The sales figures indeed surprised investors positively and are likely to keep the sector’s share price momentum alive,” said Stefan Bauknecht, equity portfolio manager at DWS. Analysts at Bernstein noted that sales exceeded expectations across all divisions — from fashion and jewellery to spirits and hospitality.While optimism is returning, several analysts cautioned against reading too much into the rebound. Jefferies noted that it was “too early to talk about a general recovery” and questioned whether early signs from LVMH were being mistaken for an industry-wide turnaround.According to Reuters calculations, the LVMH-led rally added roughly $80 billion in market capitalisation to companies in the STOXX Europe Luxury 10 index — the biggest such jump since early 2024. The gains come amid hopes that sweeping creative and management changes at top brands will begin to pay off.Sales in mainland China — a key growth engine for global luxury — turned positive, with consumers responding well to immersive retail concepts such as Louis Vuitton’s ship-shaped boutique in Shanghai. Sales from travelling Chinese shoppers also improved, though they remained lower than last year.Chinese demand, which accounts for nearly one-third of global luxury sales, had been hit hard by the property downturn, US trade tensions, and economic uncertainty.Ariane Hayate, European equity fund manager at Edmond de Rothschild, said the third-quarter performance was “reassuring”, citing “idiosyncratic” growth factors such as Louis Vuitton’s initiatives in China. LVMH’s fashion and leather goods division — its core profit driver — improved sequentially but still recorded a 2% year-on-year decline.LVMH Chief Financial Officer Cecile Cabanis said on Tuesday that “economic uncertainty and unfavourable exchange rates” would continue to affect the group’s performance in the fourth quarter. UBS forecasts a 4% organic sales growth for the sector next year, expecting momentum to pick up only in the second half of 2026 as new designer collections reach stores.
Business
50% US tariffs: Indian refiners look to cut back on Russian crude imports; Trump claims India to stop buying oil from Moscow – The Times of India

India is looking to reduce its Russian oil imports with refiners planning a gradual reduction, according to a Reuters report quoting sources. Russia continues to be India’s largest crude oil supplier. The Donald Trump administration has imposed 50% tariffs on India, 25% of which are for the latter’s crude oil procurement from Russia.On Wednesday, US President Donald Trump claimed that Prime Minister Narendra Modi had given assurance that India would discontinue purchasing oil from Russia.“So I was not happy that India was buying oil, and he (Modi) assured me today that they will not be buying oil from Russia,” Trump informed reporters at a White House gathering on Wednesday.Sources told Reuters that Indian refiners have not received any official directive from the government regarding stopping Russian oil imports.The sources quoted in the report indicated that an immediate halt to Russian oil purchases would be problematic, as transitioning to alternative crude sources would result in increased global oil prices and potentially trigger inflation concerns.During April to September, India’s Russian crude imports averaged 1.75 million barrels per day, representing approximately 36% of total oil imports, down from 40% in the corresponding period last year, according to government statistics.Imports of US crude increased by 6.8% year-on-year to roughly 213,000 bpd, constituting 4.3% of total imports.For the six-month period ending September 2025, Middle Eastern oil’s proportion increased to 45% from 42%, as revealed by the data.Following Trump’s claim, India issued a statement on Thursday emphasising its two primary objectives: maintaining stable energy prices and ensuring supply security.“It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective,” the foreign ministry said in a statement.Indian officials are currently conducting trade negotiations in Washington, whilst the US has increased tariffs on Indian goods by twofold to encourage New Delhi to decrease Russian oil imports. US negotiators have indicated that reducing these purchases would be essential for lowering India’s tariff rate and concluding a trade agreement, the Reuters report said.India and China have emerged as the leading purchasers of Russian seaborne crude exports, benefiting from reduced prices that Russia has had to offer following European buyers’ withdrawal and sanctions imposed by the US and EU after the Russia-Ukraine war that started in February 2022.Meanwhile India has indicated that it is exploring enhanced energy collaboration with the United States.“The current Administration has shown interest in deepening energy cooperation with India. Discussions are ongoing,” said foreign ministry spokesperson Randhir Jaiswal in the statement.
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