The decision to rent or buy a home is a pivotal moment in many people's lives. It's not just about where you'll live; it's about how you'll allocate your resources and shape your financial future. In this guide, we'll break down the essential factors you need to consider when deciding between renting and buying in India.
| Expense Category | Renters | Homeowners |
|---|---|---|
| Monthly Rent | ₹20,833-₹43,750 | N/A |
| Home Loan EMI | N/A | ₹77,530-₹1,16,295 |
| Property Tax | N/A | ₹1,000-₹3,000 |
| Maintenance Fee | ₹1,000-₹2,500 | ₹2,000-₹5,000[1] |
| Utilities (Electricity, Water, Gas) | ₹2,000-₹5,000 | ₹2,000-₹5,000 |
| Internet | ₹500-₹1,500 | ₹500-₹1,500 |
| Repairs and Upkeep | Usually covered by landlord | ₹1,000-₹3,000[2] |
| Insurance | Optional, usually not taken | ₹500-₹1,500 |
| Total Monthly Expenses | ₹2,43,33-₹52,750 | ₹84,530-₹1,30,295 |
[1] Varies according to society and amenities
[2] Varies according to property condition and unforeseen issues
When you buy a home, each mortgage payment builds equity. Over time, this can significantly contribute to your net worth.
While not guaranteed, property values in India have historically appreciated over the long term.
Funds used for a down payment could potentially earn returns if invested elsewhere.
The data represents cumulative appreciation, starting from a base of 100 in 2014.
Consider your personal circumstances, financial goals, and lifestyle preferences. There's no one-size-fits-all answer, but understanding these fundamentals will help you make an informed decision.
Whether you choose to rent or buy, your decision should align with your financial situation and long-term goals. In our next blog, we'll dive deeper into the financial aspects of renting vs. buying to help you further navigate this important decision.
