**How about Home+FD partially**
FD interest lost as the hard cash is used for the down-payment.

In current situation with current rates of Home Loan Interest = 10.5% and FD rates (long term) 9.5% it makes no sense to buy an apartment.

Yes, Even I would like to see your calculations. It really depends on how you want to utilize your hard cash. I am not an expert, it's just open for discussion.

Let me start with a simple calculation -

Let's say you have Hard cash 45 Lacs (ready to accoupy properly value). There is no reason we have to invest entire 45Lacs to buy it.

For calculation purpose, say you are

#1. Taking House loan of 30 Lacs, 11% fixed interest for 7 Yrs (HDFC is providing TrueFixed loan). By end of 7 Yrs you will be paying approx 43 Lacs to Bank, which is 13 Lacs more.

#2. Investing on FD same 30Lacs @ 9.5% for 7Yrs will give you 56 Lacs. Having max 30% tax slab, This will reduce to 45.5Lacs, which is 15.5 Lacs

So what ever paid extra to bank on loan is recovered back. Inflation is applicable for #1 and #2 above, So will it get nullified?

Next important questions are

#3. Are you renting this apartment?

3.a. If yes, you get tax benefit of full interest paid amount on home loan. For above calculation its 4 Lacs for 7Yrs.

3.b. And also Rent received say 14K PM, after tax (30% slab) will give 8 Lacs for 7Yrs.

#4. If you are staying in rented home in a different city, 3.b gets nullified, but You can claim HRA for 14K PM paid - For salaried people, benefit of couple lacs.

Now, let's look at the first 15Lacs (45-30Lacs) down payment. If this is not invested in an apartment, this amount in FD will give you 22 Lacs after tax at the end of 7Yrs. This has to be reduced with benefits pointed out above (#3.a plus #3.b plus #2 minus #1)

So at the end of 7yrs owning a house (value >45Lacs), staying in rented one and also enjoying hard cash (30Lacs in FD) may be much beneficial??

I would have missed lot of other points like maintenance cost loss etc. What are the other important high value points I missed in this?