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Decision - What is better? BUY

No of Years 15

RENT BUY

Monthly Rent 20,000 Cost of Property 7,500,000

Tax Benefit 30% Downpayment 15%
Effective Rent 14,000 Downpayment Amount 1,125,000
Annual Rent 168,000 Loan Amount 6,375,000
Interest rate for Loan 7%
Average Annual Rental Increment 7% Loan Duration 15
Total Rent for the period 4,221,676 EMI 57,300
Tax Bracket 30%
Downpayment Amount 1,125,000 Effective Interest rate for Loan 4.9%
Saving in Monthly EMI 36,082 Effective EMI 50,082

Rate of Return on investment 10% Total Net Interest Paid over the period 2,639,694
Maintenance Cost 0.35%
Value of Downpayment saved 5,010,659 Maintenance Amount 2,188
Value of EMI saved 14,954,766 Annual Increase in Maintenance 5%
Total Maintenance over the period 584,695
Net Benefit of Renting a House 15,743,750
Total Cost of Buying the House 10,724,388

Increase in Property Value 9%

Value of Property after the period 27,318,618

Net Benefit of Buying a House 16,594,230