Rent vs buy
Two scenarios over your stay horizon: keep renting and invest the down payment, or buy with a loan and hold the property.
Renting comes out ahead
Renting is ₹9.44 L ahead after 7 years.
- Rent paid over 7 yrs
- ₹35.25 L
- Renting, net of the invested down payment
- ₹3.28 L gain
- Buying, net of resale value
- ₹6.16 L cost
- Down payment invested grows to
- ₹38.54 L
- Buy: equity after 7 yrs
- ₹90.34 L
Down payment assumed invested at 7% p.a. for the rent path.
Property appreciation assumed at 5% p.a.
Rent escalates 6% p.a.; maintenance ignored on the rent path.
Ignores tax benefits, transaction costs (stamp duty, brokerage), and exit costs.
Formula version 2026-09-10. A scenario tool, not advice.