Property · decision
Rent or buy in your city?
Pick your city to load rough starting numbers, then type in the real price and rent of the home you are looking at. We add your state’s stamp duty and compare the two paths year by year.
Last updated: Reviewed by IndiaDigital editorsSources
Loan, growth and return assumptions
Renting and investing comes out ahead
Buying cost 8.35%: stamp duty and registration in Maharashtra (₹6,25,000) plus 1% for brokerage and legal work.
How it works
- Buyer’s wealth = home value minus loan left, plus anything saved when rent would have cost more than the EMI and upkeep.
- Renter’s wealth = the down payment and buying costs invested on day one, plus each month’s difference when owning costs more than rent.
- Buying cost uses our stamp duty table for the city’s state, plus 1% for brokerage and legal work. Selling costs and tax on gains are left out.
- City numbers are rough round figures for a 2BHK in a mid-market area, not market data. Always replace them with real quotes.
Questions people ask
Why does renting often win in big cities?
Because yearly rent is only about 2% to 3.5% of the price in many Indian metros, while a home loan costs 8% or more. If you invest the difference, renting can build more money. Buying gives security and freedom that the maths does not price.
What matters most in the answer?
How long you will stay, how fast prices and rents rise, the loan rate, and the return you would really earn by investing. Try a few values for each.
Sources
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