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Rent or buy compared.
Buying is not automatically better than renting. This compares what you would be worth after a set number of years either way, with the renter investing the difference.
This is the number everyone guesses high. Over long periods Indian housing has often trailed equity.
Repairs, society charges and property tax. A landlord pays these, you would not.
Paid once, to the state, and never recovered. Usually 5–8% depending on where you buy.
The answer
Renting, at these numbers.
After 20 years you would be about ₹2.16 Cr better off. Change the rate property rises at and the answer often flips, which tells you how much that one guess decides.
Buy
₹2.57 Cr
- EMI
- ₹55,541
- Place worth
- ₹2.57 Cr
- Still owed
- ₹0
- Interest paid
- ₹69.3 L
- Stamp duty etc
- ₹5.6 L
Rent and invest
Better₹4.72 Cr
- Rent paid
- ₹1.23 Cr
- Portfolio
- ₹4.72 Cr
How it is decided
What each leaves you with after 20 years
- Buy₹2,56,57,084A home worth ₹2.57 Cr, less ₹0 still owed
- Rent and investAhead₹4,72,28,897The down payment and the monthly difference, invested
What this assumes
The buyer's wealth is the house less the loan. The renter invests the deposit, the stamp duty the buyer hands over, and whatever the buyer pays above their rent each month. It leaves out the tax deduction on home loan interest, which favours buying a little.
Rules and rates from
- The reducing-balance EMI formula banks use
- Standard compound-growth maths; no official rate involved
Education only, not investment, tax or legal advice. I am not a SEBI-registered investment adviser.
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