‘Don’t fall for rent-equals-EMI myth, rent isn't failure’: Expert urges caution among home buyers
One of Shrivastava’s key arguments is that first-time buyers underestimate how restrictive a 15- to 20-year home loan can become. “No spreadsheet can fully capture how heavy that burden feels over the years,” he noted, emphasising that people in their 20s and 30s often experience rapid changes in career, income stability, family structure and location.
- Dec 3, 2025,
- Updated Dec 3, 2025 8:04 PM IST
Financial educator and entrepreneur Akshat Shrivastava has cautioned first-time home buyers against falling for the popular belief that paying rent is equivalent to servicing a home-loan EMI—a comparison he says oversimplifies a life-altering financial decision. In a detailed advisory, Shrivastava said that while the “rent = EMI” pitch sounds compelling, it pushes people—especially young middle-class earners—into purchasing homes prematurely without evaluating long-term costs, personal flexibility, and future uncertainties.
Shrivastava explained that home buying in India is often driven by an emotional narrative rather than objective financial planning. “The middle class often gets pushed into buying a house because of a simple sales pitch: if the rent is the same as the EMI, why keep renting?” he said. This mindset, he argues, is flawed because EMIs lock buyers into long-term obligations, whereas rent remains a shorter and more flexible financial commitment.
Loans restrict flexibility
One of Shrivastava’s key arguments is that first-time buyers underestimate how restrictive a 15- to 20-year home loan can become. “No spreadsheet can fully capture how heavy that burden feels over the years,” he noted, emphasising that people in their 20s and 30s often experience rapid changes in career, income stability, family structure and location.
According to him, committing to an EMI “kills flexibility” at a crucial development stage when individuals may want to switch jobs, move cities, pursue opportunities abroad, or take career risks. Renting, he said, allows these transitions without the financial anchor of a large loan.
Under-construction projects
Shrivastava also warned against buying under-construction properties, which are particularly popular among first-time buyers due to lower initial prices. He pointed out that delays are common and often derail major life plans tied to possession dates. Citing examples from Delhi’s Dwarka and Rohini, he highlighted that several buyers ended up paying EMIs for properties that either stalled or depreciated in value, leaving them financially stretched.
In such cases, he said, buyers face a double blow—continuing loan repayments while the asset itself fails to generate returns or utility.
Hidden costs of a loan that drag decades
Shrivastava noted that a home loan is not just a financial commitment; it carries psychological weight. As individuals age, their responsibilities expand—children’s education, healthcare costs, ageing parents, and sometimes career stagnation. “A 20-year EMI can feel manageable at 30, but far heavier at 40 or 45,” he said, urging buyers to assess whether they will still be comfortable with payments in the second half of the loan tenure.
Property’s real value
For those considering a home purchase around the age of 30, Shrivastava recommended a sober evaluation of whether the property will genuinely appreciate in value after inflation. He said buyers must be brutally honest about their financial readiness and not assume that real estate prices will rise automatically.
Renting is not a failure
Concluding his advisory, Shrivastava said it is often wiser to continue renting if future plans are uncertain. “Life changes quickly—people switch jobs, shift cities, or outgrow their current space—and an EMI doesn’t leave much room to adapt,” he said. Renting, he emphasised, offers flexibility, preserves liquidity and protects individuals from making rushed decisions that may backfire.
His message to young professionals is simple: buy when you are ready, not when society tells you to.
Financial educator and entrepreneur Akshat Shrivastava has cautioned first-time home buyers against falling for the popular belief that paying rent is equivalent to servicing a home-loan EMI—a comparison he says oversimplifies a life-altering financial decision. In a detailed advisory, Shrivastava said that while the “rent = EMI” pitch sounds compelling, it pushes people—especially young middle-class earners—into purchasing homes prematurely without evaluating long-term costs, personal flexibility, and future uncertainties.
Shrivastava explained that home buying in India is often driven by an emotional narrative rather than objective financial planning. “The middle class often gets pushed into buying a house because of a simple sales pitch: if the rent is the same as the EMI, why keep renting?” he said. This mindset, he argues, is flawed because EMIs lock buyers into long-term obligations, whereas rent remains a shorter and more flexible financial commitment.
Loans restrict flexibility
One of Shrivastava’s key arguments is that first-time buyers underestimate how restrictive a 15- to 20-year home loan can become. “No spreadsheet can fully capture how heavy that burden feels over the years,” he noted, emphasising that people in their 20s and 30s often experience rapid changes in career, income stability, family structure and location.
According to him, committing to an EMI “kills flexibility” at a crucial development stage when individuals may want to switch jobs, move cities, pursue opportunities abroad, or take career risks. Renting, he said, allows these transitions without the financial anchor of a large loan.
Under-construction projects
Shrivastava also warned against buying under-construction properties, which are particularly popular among first-time buyers due to lower initial prices. He pointed out that delays are common and often derail major life plans tied to possession dates. Citing examples from Delhi’s Dwarka and Rohini, he highlighted that several buyers ended up paying EMIs for properties that either stalled or depreciated in value, leaving them financially stretched.
In such cases, he said, buyers face a double blow—continuing loan repayments while the asset itself fails to generate returns or utility.
Hidden costs of a loan that drag decades
Shrivastava noted that a home loan is not just a financial commitment; it carries psychological weight. As individuals age, their responsibilities expand—children’s education, healthcare costs, ageing parents, and sometimes career stagnation. “A 20-year EMI can feel manageable at 30, but far heavier at 40 or 45,” he said, urging buyers to assess whether they will still be comfortable with payments in the second half of the loan tenure.
Property’s real value
For those considering a home purchase around the age of 30, Shrivastava recommended a sober evaluation of whether the property will genuinely appreciate in value after inflation. He said buyers must be brutally honest about their financial readiness and not assume that real estate prices will rise automatically.
Renting is not a failure
Concluding his advisory, Shrivastava said it is often wiser to continue renting if future plans are uncertain. “Life changes quickly—people switch jobs, shift cities, or outgrow their current space—and an EMI doesn’t leave much room to adapt,” he said. Renting, he emphasised, offers flexibility, preserves liquidity and protects individuals from making rushed decisions that may backfire.
His message to young professionals is simple: buy when you are ready, not when society tells you to.