The Puzzling Rent-or-buy Debate

Are you caught up in the rent vs. buy a house debate? Fret not. We have come to your rescue. After analyzing the pros and cons of renting and buying a house, we have compiled some interesting pointers in a table below. These pointers will not only solve the conundrum for you, but will also help you make a smarter decision.



If the above table still didn’t answer all your questions and you are still thinking of buying a home, you should ask yourself the following questions:

1. Do you plan to stay in your current city for a long term (more than 5 years)?
2. Have you calculated what your EMI could be if you were to purchase a house? Does this EMI fit your budget?
3. What is your current ‘rent to capital’ ratio?
4. What is the estimated annual increase in the value of the property you plan to buy?

If you have the answer to the last question, then the puzzle has been solved.

About the author: Naveen Kukreja is Director, Paisabazaar.com
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