Home-Owning  Vs  Renting

Domain Dilemma

You need a space to call your own - but do you really need to be a homeowner?

You can certainly make a rental feel like home with the right decor. Here’s a look at the pros and cons.

Property Price Trends

Price movement is the major trigger for a home purchase decision. If property prices go up, you pay a higher amount.

So, buying a home early in life means potentially locking in  lower rates.

Home Loans

While you may be earning well now and can afford a home, taking a loan involves a big financial commitment that will span a long period - over a decade!

Down Payment

Accumulate at least 20% of your property value before buying a home. Invest your savings regularly into a mix of equity and debt funds, till you hit the target. 


High rental is a reason why many people choose to take a loan and buy a home.

Living close to work means paying at least 30%-40% of your take-home salary as rent, especially in larger cities. 

The Case For Buying A Home

While renting is how most young professionals start out, they do pivot to buying a home depending on how fast their incomes rise.

EMIs Vs Rent

The thought process is - if you are paying high rental each month, you might as well put that amount towards an EMI for a place that is actually your own. 

The Reality Of EMIs

Most banks won’t give you a loan if your EMI exceeds 40%-50% of your take-home income, jointly or singly.

Get Financially Stable

So instead of jumping to buy a home as soon as your salary allows you to afford the EMI, strengthen your financial position first.

Choose Wisely

Owning a house is certainly a matter of pride - but before you buy, ensure your finances are in order and that you can actually afford it in the long run!

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.