Is It Better to Invest or Buy a House in India?
Investing a Rs 20 लाख down payment in equity mutual funds at 12% for 20 वर्ष grows to Rs 1.93 करोड़. The same Rs 20 लाख as down payment on a Rs 1 करोड़ संपत्ति appreciating at 8% grows to Rs 4.66 करोड़ (the full संपत्ति value). Leverage is what makes buying competitive - you control Rs 1 करोड़ with only Rs 20 लाख.
Monthly EMI
₹55,541
Total Buying Cost
₹1,49,29,765
Total Renting Cost
₹99,19,786
Property Value at End
₹2,56,57,084
Break-Even Year
Year 1
Verdict
Buying is better long-term
Compares total cost of buying (down payment + EMIs) vs renting (with annual rent increases) over the loan tenure. Factors in property appreciation for the buying scenario.
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