Should you rent or buy a home? Compare total costs over time.
| Property Value at End | — |
| Total Cost of Buying (EMI + Down Payment) | — |
| Total Cost of Renting | — |
| Net Cost of Buying (after appreciation) | — |
| Better Option | — |
Buying often costs more than renting in the short term but may build equity over time. Where property prices are high compared with rent, renting can look cheaper over shorter periods. This is a simplified comparison: it ignores the return you could earn by investing the down payment, maintenance, property tax, stamp duty and selling costs, so treat the result as a rough guide, not advice.
Q: What is the price-to-rent ratio?
A: Divide property price by annual rent. A ratio above 20 generally favors renting; below 15 favors buying. Most Indian metros have ratios of 25-50x.
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