Which one is good: rent or buy?

Deciding whether to rent or buy a home depends on various factors, including financial situation, lifestyle preferences, and long-term goals. Here are some key considerations:

1. Financial Implications:

• Buying a home typically involves significant upfront costs, including a down payment and closing costs.
• In contrast, renting usually requires a security deposit and monthly rent, which can be more manageable for those with limited savings. For example, if you buy a home worth ₹50,00,000 with a 20% down payment, you will need ₹10,00,000 upfront, whereas renting a similar property might only require ₹1,00,000 as a security deposit.

2. Stability vs. Flexibility:

• Homeownership offers stability and the potential for property appreciation, while renting provides flexibility to relocate without the burden of selling a property.
• This is particularly beneficial for individuals who may need to move for job opportunities or personal reasons.

3. Market Conditions:

• Regional differences can significantly impact the rent vs. buy decision.
• In high-demand areas, renting may be more practical, while in regions with lower property values, buying could be advantageous.

Ultimately, the choice between renting and buying should align with your financial goals and lifestyle preferences. You may use the Rent vs Buy Calculator to understand how to make the decision.