🏠💰 Rent vs Buy · 2026
🏠 Price
1.2 Cr
💰 Down
₹24L
📆 EMI
₹83K
⚖️ Break‑even
15y
📉 Your assumptions (2026)
Renting wins
🏠 Own after 20y₹2.65 Cr
🏢 Rent & invest₹2.92 Cr
📊 Difference+₹27L
💡 Insight: With 9% loan and 4% appreciation, renting+investing wins. Break‑even at year 15.
📊 Final wealth comparison
🏠 own (gold) · 🏢 rent+invest (blue)
⚡ Gold bar: owning · 🔵 Blue bar: renting
📈 Wealth growth over time
🏠 owning (gold) · 🏢 renting+investing (blue)
📘 Your scenario explained (2026)
- Property: ₹1.2 Cr with 20% down (₹24L), loan at 9% for 20y → EMI ₹83K.
- Rent: start ₹40K/mo, ↑6% yearly. Maintenance ₹3K/mo.
- Assumptions: appreciation 4%, investment return 11%.
- Final net worth: own ₹2.65Cr · rent ₹2.92Cr → renting wins by ₹27L.
- Break‑even: renting overtakes buying in year 15.
- 💡 Takeaway: With high loan rates, renting+investing builds more wealth if you stay disciplined.
📋 Best practices · 2026
- Stay ≥7 years: With 9‑10% home loans, transaction costs (stamp duty 5‑7%) need 7+ years to break even.
- Tax benefits still matter (old regime): Interest up to ₹2L/year (24b) + principal up to ₹1.5L (80C). Effectively lowers your loan cost by ~1% for 30% bracket.
- Appreciation is modest: Tier‑1 cities now see 4‑6% p.a. – adjust expectations.
- Maintenance rising: Budget 0.5‑1% of property value annually for society, tax, repairs.
- Equity returns ~11‑12%: Renting + investing surplus can beat real estate if you stay disciplined.
- Emergency fund first: Never buy a home without 12 months of expenses saved.
- New HRA cities (2026): Bengaluru, Pune, Hyderabad now qualify for 50% HRA – if you rent, you may save more tax.
Frequently asked questions
Live answers based on your sliders · 2026
🏠 Rent vs buy basics
Based on your inputs, the crossover happens around 15 years. Before that, renting+investing builds more wealth.
Your EMI = ₹83,000. Over 20 years, total interest = ₹80L.
💰 Costs, taxes & hidden fees
Stamp duty + registration is 6‑8% of property value (e.g., ₹7.2L). Our down payment slider can be increased to simulate this.
Yes, in the old regime. For your loan of ₹96L, you can deduct up to ₹2L interest/year, saving ~₹60k tax annually if in 30% bracket.
📈 Market assumptions (2026)
Post‑2025, Indian real estate growth has moderated to 4‑6% in most metros. Your slider is at 4% – a realistic long‑term assumption.
Yes, long‑term Nifty returns are around 12‑14%. Your investment return 11% is a conservative estimate for planning.
⚖️ Lifestyle & personal factors
With your break‑even at 15 years, selling earlier would likely lose money after transaction costs. Renting is safer.
You’ve set maintenance at ₹3,000/mo. Over 20 years, that’s ₹7.2L – a significant cost for owners.
Yes – add it to maintenance. Typically 0.1‑0.5% of property value = ₹12k‑60k/year.
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