owned house or rental propertyEveryone wants to have their own perfect home. But it is not possible for everyone. Buying a home is possible for many people, but if you think about it, apart from the investment required to buy your own home, the EMI you have to pay first, many people stay in a rented house and invest the remaining money. like to do. and paying rent. Which option is better? Let us know the advantages and disadvantages of both the options.
Let’s understand the math of buying a house:
You need to raise a lot of money to buy a house. For example, if you want to buy a house of 50 lakhs, then you have to pay at least 10% down payment. Also, if you apply for the loan, then you will have to pay a minimum fee of 40,000 thousand for the entire process of home loan. Along with this, stamp duty and registration charges for the house and GST on the same will have to be paid. For this you will need at least 4 lakh rupees. So you should have total Rs 9.50 lakh. After this you can also start with EMI above 45 lakhs.
Let us now understand the math of rent:
On an average a house of 50 lakhs can afford a BHK. If you rent a similar house, then you will have to pay at least Rs 15,000 per month as house rent. You have to give six months money as deposit i.e. 90 thousand rupees. That is, your expenditure can be around 3 lakhs (agent money and rent agreement) in a year.
How do you benefit from renting?
If you invest the same amount in a scheme that gives good returns or invest in the stock market without taking a home loan, then it can be very beneficial for you.
- Initial investment Rs.6 lakh
- 15000 per month investment
- 15% interest per annum
- Total investment period – 20 years
- After twenty years, 2 crore 80 lakhs in your hand
By calculating the compound interest, you will accumulate up to Rs 2 crore 80 lakh. In other words, living and investing in a rental home can be beneficial in a sense.
Note – The above information is based on general knowledge. Consulting a financial expert is a must if one wants to invest or make any of the above decisions.
