The Math Of Buying vs Renting A House

In lockdown, people started realising the benefits of owning a home due to saved living costs and security of asset.

Owning a home is an asset and most millennials are realising it only now.

The pandemic has made a huge impact on millennials' decision to own homes.

According to Anarock (leading real estate company in India) data, the combined rent of five years for tenants in the city amounts to being between 27% and 52% of the cost of a piece of property in the suburbs of Mumbai, Delhi NCR and Bengaluru.??

The calculation covers the rental expense of five years as well as the yearly rental increase of 3.5 percent.??

For eg, average rent paid by tenants belonging to Delhi NCR is Rs 22,000. For five years, this amount, including rental escalation, is about Rs 13.7 lakh.??

In Mumbai and Bengaluru, the amount (for five years) goes upto over Rs 28.6 lakh and 11.5 lakh, respectively.

Home loan interest rates right now are a huge upvote to buying a house.?

Other factors to keep in mind while buying or renting a house...

Analyse your income and expenses, only then decide your course of action.

Long-term personal and professional goals are another factor. Before deciding to buy a home, ask yourself if you have plans of moving abroad? Will you be moving to a different city soon perhaps?

Does your dream house have all the amenities and facilities you want to be close to?