by one stop realty 
“Food, clothing, and shelter”—these are the essentials of life. But when it comes to shelter, should you rent or buy?
Renting vs. Buying: A Detailed Look
Rental Calculations:
- Monthly Rent: ₹10,000
- ROI: 12%
- 10 Years: ₹23,23,391
- 20 Years: ₹1,99,82,958
- 30 Years: ₹7,05,98,275
These numbers look impressive, but let’s consider other factors such as inflation and practical use of money at an older age.
Investing vs. Buying:
Experts suggest that you can buy a property worth ₹1.5 crore and still save approximately ₹40 lakhs after 20 years.
Renting Costs Over 20 Years:
- Annual rent increase: 5-10%
- Excluding shifting costs
- Total expenditure over 20 years: ₹1.18 crore + ₹48 lakh (considering an average increase)
Future Property Value:
- In 20 years, property prices in Mumbai could easily reach ₹4-5 crore.
Key Points to Consider:
- Limited Land Resource: Land is finite and its value appreciates over time.
- Health Risks: What if you face health issues between ages 35-45? Owning a home provides security for your family.
- Insurance: Opt for term insurance costing ₹5,000 per month for life coverage.
Final Thought:
Your monthly expenses could be:
- SIP: ₹10,000
- Term Insurance: ₹5,000
- Rent: ₹20,000 (and increasing)
Conclusion:
Buying a home can be a wise investment considering future property value, land scarcity, and family security. Renting might seem cheaper now, but long-term costs and uncertainties must be weighed in. Make an informed decision that best suits your financial goals and lifestyle needs.
Choose wisely—your shelter is not just a place to live, but a long-term asset for your future.
