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Home/Loans

Rent vs Buy

Compare renting vs buying a home

Buying Details
₹
₹10,00,000₹10,00,00,000
%
10%50%
% p.a.
6% p.a.15% p.a.
years
5years30years
%
3%12%
% p.a.
0.5% p.a.3% p.a.
% p.a.
0% p.a.2% p.a.
Expected annual price growth
% p.a.
0% p.a.15% p.a.
Renting Details
₹
₹5,000₹5,00,000
Expected yearly rent hike
%
0%15%
Return if you invest instead of buying
% p.a.
5% p.a.18% p.a.
years
5years30years
Buying is Better

After 20 years, buying gives you ₹57,20,908 more net worth

Break-even point: Year 2

Net Worth Comparison (After 20 Years)

If You Buy

Better
Property Value
₹2,56,57,084
Loan Paid Off
Yes
Total Cost Incurred
₹1,99,04,036
Tax Benefits

80C + Sec 24

~₹21,00,000
Net Worth
₹2,56,57,084

If You Rent

Investment Corpus
₹2,98,55,962
Total Rent Paid
₹99,19,786
No Property Owned
-
Flexibility

Can relocate easily

High
Net Worth
₹1,99,36,176
Buying Costs
Down Payment
₹16,00,000
Loan Amount
₹64,00,000
Registration & Stamp Duty
₹5,60,000
Monthly EMI
₹55,541
Total EMI Paid
₹1,33,29,765
Total Interest
₹69,29,765
Maintenance ({analysisYears}y)
₹29,42,847
Property Tax ({analysisYears}y)
₹14,71,424
Total Cost
₹1,99,04,036
Renting Costs
Starting Rent
₹25,000/month
Rent Increase
5% yearly
Total Rent ({analysisYears}y)
₹99,19,786
No Maintenance Cost
₹0
No Property Tax
₹0
No Loan Interest
₹0
Invested Amount

(Down payment + registration)

₹21,60,000
Final Corpus
₹2,98,55,962
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