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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