Sweet Home: Rent Or Buy? 7 Points

Delhi

1. The Rent vs. Buy Debate

   • Renting vs. buying a house with a home loan has always been a hot topic, especially among salaried professionals.

   • While renting (House Rent) offers flexibility and lower upfront costs, buying is often linked with long-term financial security and asset creation.

2. CA Nitin Kaushik’s Bold Take

   • Chartered Accountant Nitin Kaushik sparked fresh debate by calling the “Rent is Waste” belief a myth.

   • His argument: EMIs can drain more money than rent, especially due to hefty interest payments.

3. The Home Loan Trap: Real Numbers

   • Example: A ₹1 crore home, financed with an ₹80 lakh loan at 9% interest for 20 years.

   • Monthly EMI: ₹72,000

   • Total Payment: ₹1.73 crore

   • Interest Paid: ₹93 lakh extra

   • Renting the same house could cost far less over the same period.

4. Rent = Flexibility + Liquidity

   • Renting offers financial liquidity and career mobility without long-term debt.

   • Home loans, while marketed as “investment,” are actually leverage + liability.

5. Expert Insights: Key Factors to Consider

   • Financial Security: Stable income is vital to handle EMIs without sacrificing essentials.

   • Mobility & Maintenance: Renters enjoy job flexibility and fewer repair responsibilities.

   • Security vs. Liquidity: Owning brings stability, while renting maintains liquidity.

   • Market Conditions: Property appreciation/depreciation directly impacts homeowners.

   • Lifestyle Choices: Location, amenities, and personal goals influence the decision.

6. Renting vs. Owning: The Balanced View

   • Renting: Best for those valuing flexibility, mobility, and financial freedom.

   • Owning: Better for those seeking long-term security, equity growth, and stability.

7. Final Verdict

   • The belief that “rent is wasted money” is outdated.

   • The smarter choice depends on timing, income stability, career goals, and market conditions.

   • Renting is not always wasteful. Buying is not always profitable. It’s about math, not emotion.

Disclaimer
The views and opinions expressed in this article are for informational purposes only and do not constitute financial, legal, or investment advice. Readers are encouraged to evaluate their individual circumstances and consult with qualified professionals before making financial decisions. The Profit India does not assume responsibility for any financial losses, liabilities, or outcomes arising from the use of this information.