How the comparison works
Buying scenario: You pay the down payment upfront, EMI every month, and annual property tax + maintenance. At end of period, you own a home whose value has grown at the appreciation rate. Your net cost is all money out minus the home's equity gain.
Renting scenario: You pay rent (which grows yearly) and invest the down payment in the market instead. Your net cost is total rent minus investment gains on that down payment.
We compare net costs over the chosen period. The cheaper option wins.
Non-financial factors
- Flexibility: renting is easier if you might move in 2-3 years.
- Maintenance burden: owning means you fix the leaks.
- Lifestyle: owning lets you customize; renting often means restrictions.
- Psychological security: owning provides stability; renting provides liquidity.