IS IT BETTER TO RENT OR BUY A RESIDENTIAL PROPERTY?

If you Buy

Total cost of property
(including taxes)

Home Loan Amount
Percentage

Home Loan Amount

Loan Tenure

Home Loan Rate of Interest

Monthly Home Loan
Instalment (EMI)

Expected annual appreciation in the value of property (%)

Property Maintenance
Cost (monthly)

Annual growth in
Maintenance Cost

Your Income Tax Slab

Indicative monthly Tax Benefit on buying a property

If you Rent

Monthy Rent

Expected increment in
Rent per year

Current Basic Salary +
Dearness Allowances

Do you live in Metro cities- Delhi, Mumbai, Kolkata or Chennai?

HRA Received Monthly

Annual Growth in Basic Salary + Dearness Allowances

Annual Growth in HRA

Security Deposit to Landlord,
if any

Initial Maintenance,
if any

Expected return on Savings, if invested in investment options other than the obove property

Results

Continuing on rent is more beneficial

(A) Actual cost of home including down payment and interest after 15 years

2.98 Cr

(B) Total rent you pay in 15 years, if you live in a rented home

1.1 Cr

(C) Amount you could invest in other avenues if you live in a rented home (Down payment + Differential in EMI and rent)

1.88 Cr

(D) Value of your Investment after 15 years with 12% expected annual return

6.46 Cr

(E) Value of your Home after 15 years with 7.5% expected annual appreciation

5.91 Cr

Expected Benefit (E-D) after 15 years if you buy a home

(-)0.55 Cr

Buying a home at 2 Cr is not beneficial. We recommend a home at a lower budget. Please use the
calculator to arrive at a suitable budget, which is beneficial to you in long term.

Disclaimer