Analysis Period 15 years

In this case you should RENT your house 3 BHK

Renting a house - what are the financials? Buying a house - what are the financials?

Monthly Rent? 28,000 Cost of the property 85,00,000

HRA Tax Benefit? 30% Registration % 7%
Effective Monthly Rent 19,600 Registration Amount 5,95,000
Downpayment % 25%
Yearly Rent you will pay 2,35,200 Downpayment Amount 21,25,000
Avg. yearly rent increase 10% Total upfront amount (incl registration) 27,20,000
Loan Amount 63,75,000
Total rent over the period 74,72,888 Interest rate on loan % 8%
(this amount is not inflation adjusted) Loan Duration in years 15
EMI per month 60,923
This is your expense. But you also gain Tax bracket 30%
if you invest the amount of downpayment Effective Interest Rate % 6%
and also the additional interest you will pay Effection EMI per month 52,428
beyond your monthly rent
So this should be added as a benefit to Total Interest over the period 30,62,036
renting a house
Maintenance Amount (% of cost) 0.8%
Total upfront amount 27,20,000 Maintenance Amount per month 5,313
Additional monthly amount Avg. yearly increase % 5%
you can invest 32,828 Total maintenance over the period 13,75,633
Monthly Interest minus rent (which increases every year)
Return you can generate 7% Total cost of buying the house 1,35,32,669
Cost of house + Interest + maintenance
Value of upfront amount
after the period 75,04,566 The value of the house increases as well every year
Value of monthly amounts Property will increase by what %
after the period 56,32,276 every year 5%
Value of property after this period 1,76,70,890
Net benefit of renting a house 56,63,954 Adjusted for inflation

So net benefit of buying a house is 41,38,220