Question 1

Is it better to rent or buy a home in India?

Accepted Answer

It depends on factors like property prices, rent levels, loan rates, and how long you plan to stay. In high-cost cities, renting and investing the difference often wins over 10-15 years, while buying makes more sense for long-term stays with moderate property prices.

Question 2

How does the rent vs buy calculator work?

Accepted Answer

The calculator compares two scenarios: buying a home with a loan (EMI + down payment) versus renting and investing the surplus. It factors in rent increases, property appreciation, and investment returns to determine which option leaves you better off financially.

Question 3

What is the 1% rule in real estate?

Accepted Answer

The 1% rule states that if the monthly rent is less than 1% of the property price, buying may be more cost-effective than renting. For example, if a property costs 50 lakhs, the monthly rent should be at least 50,000 for renting to be worthwhile.

Financial Calculators