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Decision - What is better?BUY
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No of Years25
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RENTBUY
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Monthly Rent7,000Cost of Property3,600,000
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Tax Benefit30%Downpayment15%
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Effective Rent4,900Downpayment Amount540,000
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Annual Rent58,800Loan Amount3,060,000
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Interest rate for Loan7%
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Average Annual Rental Increment
7%Loan Duration25
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Total Rent for the period3,719,043EMI21,627
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Tax Bracket30%
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Downpayment Amount540,000Effective Interest rate for Loan4.9%
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Saving in Monthly EMI12,811Effective EMI17,711
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Rate of Return on investment10%
Total Net Interest Paid over the period
2,253,188
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Maintenance Cost0.35%
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Value of Downpayment saved6,510,750Maintenance Amount1,050
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Value of EMI saved16,997,566Annual Increase in Maintenance5%
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Total Maintenance over the period
625,285
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Net Benefit of Renting a House
19,789,273
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Total Cost of Buying the House6,478,473
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Increase in Property Value9%
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Value of Property after the period31,043,090
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Net Benefit of Buying a House24,564,618
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