Should I rent or buy a house?

“My Mind and Logic say - Rent a House, but my parents and my heart want me to Buy”- If this dilemma is in your mind right now, we welcome you to the adulting era.

This very debatable question- “buying vs renting home” has various reasons to support or oppose, but Indians need to make a decision that balances their Emotions and Finances. 

Let’s see this with an example:

** Note: The amount saved per month and the lumpsum amount are invested in mutual funds with an expected return of 12% for next 20 years.

• Who will go for a buy?
  One who wants to have an immediate sense of ownership.
• Who will go for renting? 
  One who prefers liquidity, as this person might end up with 2.78 crores of corpus.

Financial vs Emotional Aspect 

When it comes to the emotional aspects, buying a house offers a sense of accomplishment and stability. It's a significant life milestone and ensures long-term security without the worry of eviction. It also serves as a legacy to pass down through generations, albeit with societal pressures to conform. However, it can limit flexibility and entail maintenance responsibilities. 

On the other hand, renting provides the freedom of flexibility, without the commitment or societal pressures, allowing for easy mobility and a sense of temporary belonging. 

Financially, buying involves initial and ongoing costs, including location-based expenses and maintenance, but offers the potential for long-term value appreciation and eventual full ownership.

Renting, while simpler in terms of upfront costs and maintenance, lacks the potential for property value gain and ownership, offering instead the flexibility to adjust budgets and relocate as needed.

Buying or renting a house is very subjective to the person- Family, Income, aspirations and more. So what will you do? 

Also, check out our EMI calculator

to decide better.