Rent vs Buy: The Math Nobody Shows You

"Rent is throwing money away" is the most expensive financial myth in India. Let's do the actual math.

The Hidden Costs of Buying

• Registration & Stamp Duty: 7-10% of property value (₹7-10L on a ₹1 Cr flat)
• Home Loan Interest: At 8.5% for 20 years, you pay ₹1.1 Cr in interest on a ₹80L loan
• Maintenance: ₹5,000-15,000/month for society charges, repairs
• Opportunity Cost: That ₹20L down payment in equity mutual funds at 12% becomes ₹1.9 Cr in 20 years

When Buying Makes Sense

Buying wins when: (a) you'll stay 10+ years, (b) rent-to-EMI ratio exceeds 0.5, (c) property appreciation exceeds 8% annually, or (d) you value stability over returns.

The Verdict

There's no universal answer. Run the numbers for YOUR city, YOUR rent, YOUR loan terms. That's exactly what Arth helps you do.

This is a draft article. Interactive rent-vs-buy calculator coming soon.