Intention to buy a deluxe house. Good idea/terrible idea?

Me 36, Wife 34 House wife. Kid 4. Annual Salary 56.35 (pre-tax). In hand at roughly 3L + year end bonuses at 5L post tax so annual net at 41L.

Current networth 1.25cr. Split 55L in wife+my PPF, 25L EPF, 11L in SGB, roughly 35L in mutual funds and stock.

(Could have been more but started in 2011 with 20k/month salary at HCL. But, not a software engineer.)

Current expenses stand at 40k/month rent, roughly 10k/month school fee for kid, 20k/month to support in-laws, 65k/month in monthly expenses. 1L/month in investments (25k in PPF, 15k in index fund, 60k in stocks), retain 20k in liquid cash/month for unexpected needs*, 10.2k/month car emi, rest in domestic travel.

*If I end up with 2.40L at the end of the year, i keep 1L and deploy the rest into an FD/MF.

Okay, here’s the (potentially disastrous but) interesting part. Top notch builder is selling a 3BHK at 2.5Cr very near where I live, so the life will get a seamless upgrade. I think I can manage a 50L downpayment but EMIs at 1.6L/month could be crushing.

Is it a good or a bad idea to go with this. Since starting my career, I had to move houses on an average every 2 years. It wasn’t painful then, but with wife and kid it’s gotten tiring and we’re kind of exhausted with random notifications of vacating the flat from our landlords, with multiple losses (held up security deposits, packers and movers, damaged appliances etc.)

Don’t want to leave the area since we’re just so used to living here and have found a comfortable footing.

A good idea/bad idea to go for this? Could be too much of a burden? Haven’t asked the builder for the payment plan but they’re advertising possessions starting December 2026.

Note: I have no idea how the loans work, when do they start the EMIs etc. We were not planning a house until last year when we had to move houses and lost 35k when the landlord refused to refund the full deposit amount.