Home Loan EMI: Is it better to buy a house or rent it? Understand the complete calculation or else you will incur a loss..

Home Loan EMI: Property prices are increasing every day across the country. Seeing the rising property prices, it is not a common thing for everyone to buy their own house. Due to low budget, many people take the help of home loans while buying a house. But many people consider it right to take a house on rent instead of paying home loan EMI. Let's know which of these is beneficial.

Often these steps are taken as soon as a job is found.

As soon as the job and down payment are arranged, a home loan is easily available to buy a house. Therefore, usually, people make the big decision of buying a house as soon as they get a job. Down payment is arranged from here and there.

But is the decision to buy a house right as soon as you get a job? And is taking a home loan at the beginning of the career the right step? Let's know the answers to all these questions -

It is worth noting why buying a house or flat by taking a loan is not a profitable deal and that too as soon as you get the first job. If you do this, you get financially bound. It is better to take a house on rent. Today you can calculate for yourself what will be the right step for you.

Often when people buy a house by taking a home loan or any other loan, they get stuck in EMI. According to the data of a report, most people in the country take home loans (home loan tips) for at least 20 years. Let us understand as an example whether it is beneficial to buy your own house or living in a rented house is a profitable deal...

How much does a 2BHK flat cost in big cities

Most middle-class families in the country buy 2BHK flats, especially since this is the trend in metro cities. The price of 2BHK flats is decided according to the cities. If we take Delhi-NCR as an example, then 2BHK flats are available here for about Rs 50 lakh.

For this, about 15 percent of the amount has to be paid as a down payment. That is, about 7 to 8 lakh rupees have to be paid as a down payment. Apart from this, Stamp Duty, Registration Charges, and Brokerage are charged separately.

Apart from this, on buying a new house, people often buy new furniture and decoration items, on which they spend up to Rs 4 lakh according to an estimate. If you add the down payment and this expense, then up to Rs 12 lakh is spent separately before moving into the house.

If you buy a house on loan, then this much EMI is made every month...

Suppose someone makes a down payment of Rs 7 lakh to buy a flat worth about Rs 50 lakh and takes the remaining Rs 43 lakh as a home loan. If the CIBIL score is good, then at present, a home loan is easily available at a 9 percent interest rate.

According to 9 percent interest, the EMI per month on a home loan of Rs 43 lakh for 20 years is Rs 38,688. Apart from this, you will have to spend about Rs 12 lakh on down payment and other things.

This much will be the benefit of taking a house on rent.

Now let's look at the second situation. If you decide to live on rent instead of buying a new house and rent the flat you were buying, the monthly rent can be around 15 to 17 thousand rupees. However, houses are easily available for rent in small or big cities for this amount.

In such a situation, you will have more than 21 thousand rupees left for saving every month. Now if you invest this money in the right place, then you can create a huge fund of crores of rupees. Today, there are many options for investment in the market which also give strong returns.

A fund of Rs 3.18 crore will be ready by saving home loan installments.

If you want more returns by investing less money, then SIP is the best investment option in this case.

A return of 10 to 12 percent is easily available in SIP (Home Loan EMI Calculator). If you invest 21 thousand rupees every month and get a return of 12 percent on it, then after 20 years you will have a fund of about 2.09 crore rupees.

Whereas you will invest about 50 lakh rupees in 20 years. Getting a 15 percent return in SIP is also not a big deal. If you get a 15 percent return, then after 20 years you will get about 3.18 crore rupees.

According to this, if you do not decide to buy a house as soon as you get a job and invest while living in a rented house, then you can easily buy two houses together and you will never have to face financial crisis.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.