In this blog, we provide Buy vs Rent Indian calculator based approach to decide, if a middle class person should Buy vs Rent? We have consider various factors like return on investment, inflation, HRA benefits, EMI and even sentiments. We are assuming you are looking to buy house for your own stay and wants a gated community with major amenities like gym, summing pool, power backup, Where you can spend few good years of your life with your family.
Very common scenario face by people in general
A decent gated community with good amenities like gym, pool, garden, power backup and peaceful location and okayish connectivity from his work location. Scenario 1: A 2BHK 900 sqft is available for rent at Rs 12000 and Rs 1800 maintenance. Same flat is priced at Rs 38 lakhs for sale. Buy or rent calculator can answer this. Scenario 2: A 2BHK 1200 sqft is available for rent at Rs Rs 15000 and Rs 2400 maintenance. Same flat is priced at Rs 50 lakhs for sale. Buy or rent calculator can answer this.
Buy vs Rent Indian calculator
Provide input to see what will be you net worth in either case.
Few obvious facts
- Tax benefit on home loan EMI are much better than HRA exemption. An home loan declaration will add max Rs 5000 to an Individuals take home salary. Rs 5000 for 30% tax slab and Rs 3333 for 20% tax slab.
- An soon as you take a home loan, Bank’s monthly salary starts which is more than you left over salary.
- Home loan right after switching company cannot be good. Make sure you are settle at your current job.
- Buy a term plan helps you get loan faster and easier. read Why should you buy a term plan?
- Property bought at already higher price is not going to appreciate much.
- Distance from you office matter.