Rent or buy?
Rent or buy a home?
What you would have after the years you plan to stay — buying with a loan, or renting and investing the difference. With stamp duty, upkeep, rent rises and what-ifs.
Planning estimates for education — not financial advice. Rates and returns change.
Buying
Eighty lakh rupees
Of the price.
Used if blank: 20% — what banks usually ask
Stamp duty, registration…
Used if blank: 7% — typical in most states
Used if blank: 7.5% — a large bank's starting home-loan rate
Used if blank: 20 years — usual
Maintenance, repairs, tax — of the value.
Used if blank: 1% — a common estimate
A year.
Used if blank: 5% — a long-run estimate, not a forecast
Renting
Twenty-five thousand rupees
A year.
Used if blank: 7% — a common yearly rise
A year, after tax — the down payment and any monthly difference are invested.
Used if blank: 7% — your usual return on savings
How long you'll stay
Used if blank: 15 years — a common stay
Brokerage and charges.
Used if blank: 2% — typical
BuyAhead after 15 yrs
What you'd have in 15 years
₹1.37 Cr
Up front
₹21.6 L
EMI
₹51,558
Interest + upkeep
₹72.26 L
Rent and invest
What you'd have in 15 years
₹1.29 Cr
Rent now
₹25,000
Rent paid in all
₹75.39 L
Buying pulls ahead
Year 13
What the numbers show
- 💡After 15 years, buying leaves you about ₹8.16 L better off (₹1.37 Cr against ₹1.29 Cr renting and investing).
- 📌Buying pulls ahead from year 13. If you might move before then, renting usually costs less.
- 📌Buying needs ₹21.6 L up front (down payment and buying costs) and an EMI of ₹51,558 for 20 yrs.
- 📌Over the 15 years: interest ₹54.53 L and upkeep ₹17.73 L when buying; rent ₹75.39 L when renting.
- ⚠️The answer depends most on how fast home values and rents rise, and on the return you get. Try the what-ifs — a home is also a home: security and stability count too.
Educational planning estimates, not financial advice.
What you'd have, year by year
- Buy
- Rent and invest
- Home value
- Loan left
Buying: the home's value after selling costs, minus the loan left, plus anything invested.
What each way costs you
- Interest₹54.53 L · 70%
- Upkeep₹17.73 L · 22.8%
- Buying costs₹5.6 L · 7.2%
- Not shown (nothing or below zero): Rent
What if…
| What you'd have at the end | Buy | Rent and invest |
|---|---|---|
| As entered (15 yrs) | ₹1.37 Cr | ₹1.29 Cr |
| Home prices rise only 3% a year | ₹96.74 L | ₹1.26 Cr |
| You move after 7 years | ₹59.03 L | ₹65.83 L |
How it's worked out
Both ways spend the same money. Buying pays the down payment and buying costs up front, then the EMI and upkeep each month. Renting invests that up-front money instead and pays rent. Each month, whichever way costs less invests the difference at your return.
“What you'd have”: buying — the home's value minus selling costs, minus the loan left, plus anything invested; renting — everything invested. Tax benefits on a home loan and on rent (HRA) are not counted.