Buy vs Rent Decision
The buy vs rent decision depends on multiple factors including your financial situation, how long you plan to stay, local real estate market conditions, and personal preferences.
When Buying Makes Sense
- Planning to stay for 7+ years in same location
- EMI is similar to or less than potential rent
- Property appreciation expected to be strong
- You value ownership and customization freedom
- Good rental yields in the area (<3%)
When Renting Makes Sense
- Planning to stay for less than 5 years
- Rent is significantly lower than EMI
- Property prices are overvalued
- You value flexibility and mobility
- Better investment opportunities available
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Don't Forget
When buying, add 5-7% for registration, 1% annual maintenance, and property tax. When renting, you can invest the down payment for potential returns.