41 thoughts on “BUY or RENT a Home in 2021 | CA Rachana Ranade

  1. 20k rent or 36k loan
    My opinion is 20k rent
    Save 16 k in some stock market or mutual funds
    Year savings is 1.80×27.0
    Appireciat in stock market is 18% to 40% per annum expected overall your amount is more than four cores so you can buy a house with out credit after 15 year s

  2. Hi Rachana, very useful information, however, I believe you didn't add down payment in total cost of buying the house and the sheet shared is in pdf format which is not editable. It would be very beneficial if you could share the excel sheet so we can also perform the calculations according to our area/society.

    Thank you!
    Ankush R.

  3. your calculations have assumed that people only live for 15 years which is a gross miscalculation on your part, house ownership is not limited to 15 yrs only, it's for forever. in the long run, owning a house is always better than renting (no need to do any calculations 😂)

  4. I am not sure who wants to stay permanently in a rented house. I think not buying a house is not an option. It is just that you have to plan it. It is similar to getting married. You can save a lot of money not getting married, but how many in the world do that? 🙂

  5. I don't have sell the property and just pass on to my kids….In last 15yrs, Nifty has given 11% return i.e. 2005 at 3000 and 2020 at 15000…so 10% return after tax is almost impossible…I don't believe even HDFC bank or Kotak Bank will compound at 10% for next 30 to 40 yrs…If I have to change the stocks, I have to pay tax…I think one should aim to have simple house (nothing extravagant – honestly how many times we use swimming pool? kids play area becomes useless once kid becomes 5yr or so old where they prefer to play cricket, badminton or some other sport). Also, please have your SIP's, PPF's, SSY etc….

  6. But remember while you are renting apartment you have to shift every 2 – 3 years . Because landlord will not allow you more than that. And trust me it is hectic job coming every 2- 3 years .

  7. Net benefit cant be 1.5 crore . U dont get it mam . Have u heard of the joke. I smoke cigarettes for 15 yrs so i spent 50 lakhs and his wife says u could have bought a bmw and husband asks her u dont smoke so where is ur bmw??
    Property's value will always go up because of population
    Owning a house serves as a permanent address proof, u can conduct functions at ur house dont have to pay rent, dont have to ask permission for each and every thimg to ur landlord .

  8. Its not a comparison owning a house is always bettwer. I come from a middle class family buying a house is always a dream which came true after 25 yrs. We went through serious troubles because of rental house . Owning the house is always better. Stupid comparison . Its like saying . Book cab from travels everytime instead of buyimg a car . Obviously th3 cost will be high but the comfort ease privilege peace it gives u is invaluable

  9. I feel that the monthly EMI saved component will start to reduce over time as rent increases, so it's not possible to derive the numbers mentioned in savings… Anyway buying an apartment in a city with no much redevelopment of apartment is risky!! FYI staying in Bangalore

  10. loan amount taken is huge here thats generally not the case, also appreciation in the value of property should be factored in (if you own a house/flat) .

  11. All of this sounds good in theory but in reality it's much more complicated. Just as you explained how a 3% change in one variable can change the decision, 15 years execution can/should never be planned since lot of variables will definitely change.

  12. Thank You! I dont have to explain each time to every family member why and I rent, invest and live a quality life rather than buy, slog n age faster 😊👍sharing this video is simpler.
    Also the repair n maintenance expenses of staying in an owned flat are huge that one dose not consider
    Thanks n keep up the amazing work that you do 👍

  13. Good morning ma'am, I had a question that in case one the net benefit of renting a house in 1,57,43,759 rupees but that is the amount which we saved from giving. But in case of buying a house we have a net profit 72,00,000; this the amount which we got. So if we would have invested in the house then we would have a profit of 72,00,000 on our investment of 1,10,00,000 there is a ge difference. Thus, making the situations incomparable.

  14. Have you missed the registration cost of house ? How about buying 2nd house property and put it on rent ? But Superb analysis ma'am

  15. @Rachna Ranade With due respect, this is too good an assumption that you end up investing the same amount of money which you would have saved (notionally) by not paying for the Housing Loan EMI for 15 years and expect a return of 10%. It's like if you smoke 10 ciggerates a day costing Rs 10 per ciggerete, for next 15 years, if you don't smoke and save this money you will get handsome return. Let's be practical. "Gar ke log Nahin marte toh fauj ikkathi ho jaati". It
    doesn't happen this way.

    Secondly, no one stays in the same house for 15 years on rent. Then You should have also considered the amount of money we would spend in relocation/installation/ every 2-3 years.

    It's about making an asset and a home for future. An even after 15years you need a house to live in (for you & your family), you won't die after that. Also if you don't have a permanent address in your name, you also don't hold any value in the eyes of financial institutions for future loans.

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