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  • Buying Vs Renting

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    prabhu0894945
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    This document compares the costs of buying a house priced at ₹10,000,000 versus renting the same house for ₹30,000 per month over 20 years. It finds that buying the house would result in a final value of ₹26,532,977.05 after 20 years due to 5% annual price appreciation, while renting and investing the monthly savings of ₹56,782.32 at 10% annual returns would result in ₹43,118,726.78 after 20 years, making renting the better financial option according to this analysis.

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    Calculate the rent Vs buy

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    Buying vs Renting

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    This document compares the costs of buying a house priced at ₹10,000,000 versus renting the same house for ₹30,000 per month over 20 years. It finds that buying the house would result in a final value of ₹26,532,977.05 after 20 years due to 5% annual price appreciation, while renting and investing the monthly savings of ₹56,782.32 at 10% annual returns would result in ₹43,118,726.78 after 20 years, making renting the better financial option according to this analysis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    9 views1 page

    Buying Vs Renting

    Uploaded by

    prabhu0894945
    This document compares the costs of buying a house priced at ₹10,000,000 versus renting the same house for ₹30,000 per month over 20 years. It finds that buying the house would result in a final value of ₹26,532,977.05 after 20 years due to 5% annual price appreciation, while renting and investing the monthly savings of ₹56,782.32 at 10% annual returns would result in ₹43,118,726.78 after 20 years, making renting the better financial option according to this analysis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Buying a house Renting a house

    House price today ₹10,000,000.00 Monthly rent for same house ₹30,000.00 (Rental yield is usually 3-4% of house price)
    Historical price appreciation in Metro cities 5% Investible difference ₹56,782.32 (EMI - Rent)
    (Given time period is 20 years, it is
    reasonable to assume 10% returns from
    Tenure (in years) 20 Assumed rate of return 10% equity)
    Interest rate 8.50% SIP ₹56,782.32
    Months 240
    (At 10% returns, this is the final value of
    EMI ₹86,782.32 Final value of investments ₹43,118,726.78 your investments)

    House price after 20 years ₹26,532,977.05 Amount left over if buy the house ₹16,585,749.73 (The difference between buying and renting

    If you wish to edit this sheet, make a copy and edit the grey cells

    Buying Renting
    ₹26,532,977.05 ₹43,118,726.78

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