Buying house vs renting in Bangalore: Is Rs 80L for a 3-BHK in Bommanahalli worth it?
In Southeast Bengaluru, a family is deciding between purchasing a 3BHK or staying in a rented flat as rents rise sharply. Experts suggest comparing long-term costs, cash flow, and property value before committing.
- Sep 23, 2025,
- Updated Sep 23, 2025 5:51 PM IST
Hi, I am 30, married with a 1-year-old son, and currently living in a 3BHK near Bommanahalli, Bangalore. Rent + maintenance is Rs 22k, but my landlord (based in the US) now wants to sell the flat for Rs 80L (1500+ sq. ft., gated society). I like the house and find the price reasonable. My take-home is Rs 2.4 lakh/month, my wife earns Rs 1.1L/month. Together, we spend ~Rs 60,000 on household expenses, Rs 43,000 on EMIs (ending in 2.5 years), and invest ~Rs 1 lakh/month. We have a Rs 20 lakh down payment ready and plan a Rs 60L home loan (15 years, ~Rs 60k EMI). Should we buy now or continue renting, given rents may rise to Rs 40,000?
Advice by Animesh Hardia, Senior Vice President, Quantitative Research at 1 Finance
Buying looks financially sound if the property is genuinely worth Rs 80 lakh today and the family intends to live there 7–10 years. Cash flows are comfortable, location fundamentals are strong, and rent inflation risk is real. Still, run the checks below before signing.
Why this can work
> Strong income cushion: Post-purchase, total EMIs ≈ Rs 60,000 (home) + Rs 43,000 (existing, for 2.5 years) = Rs 1.03 lakh/month. Against a joint take-home of Rs 3.5 lakh, EMI-to-income is ~29% now and ~17% after old EMIs end—well within prudent ranges.
> Stability premium: With a 1-year-old, staying put in a known gated society has lifestyle value: commute, day care, safety, domestic help continuity, and social network.
> Rent vs buy math today: Current outgo is Rs 22k. Market rents can move toward Rs 35–40k in sought-after 3BHK gated projects. Locking an EMI near Rs 60k for ownership (with part principal build-up and tax benefits) narrows the effective gap versus renting, especially over time as rent escalates.
> Micro-market momentum: Bommanahalli/Southeast Bengaluru has seen fast, demand-led absorption, strong connectivity upgrades, and proximity to IT hubs—drivers that typically support end-user prices and rental depth over a holding period.
Essential diligence before committing
> Price sanity check: Do not anchor to the landlord’s quote. Validate with at least three recent registered transactions in the same society or two nearest comparable societies (similar tower age, floor, view, size). If average realisations point closer to Rs 1.0–1.2 crore for 1500+ sq. ft., an Rs 80L ask is a bargain; if true market clears near ₹80–90L, then you’re at fair value. Make the price reflect the floor, light, car parks, UDS share, and society conditions.
> Legal and technical: Get a title search, EC, RERA status (if applicable), OC/CC, sanctioned plan/building deviations, society NOC, and a structural/technical review (plumbing, seepage, electricals, lift, STP). This is low-cost risk removal.
> All-in cost budgeting: Beyond Rs 80 lakh, add 7–9% for stamp duty/registration, advocate + technical fees, society transfer, brokerage (if any), small interior refresh, and moving. With Rs 20L down, ensure 6–9 months of expenses remain in liquid buffers after closing.
> Loan terms: For a Rs 60 lakh, 15-year loan, a rate change matters more than small price haggles. Negotiate a step-down spread with a top lender, autopay + salary-banking benefits, and a low/transparent conversion fee for future rate cycles. Target prepayments once current EMIs end to finish in 10–12 years.
> Exit and liquidity: Confirm resale depth in this society—number of past resales, time-to-sell, and discounting needed. A liquid society is part of the return.
Rent vs buy in 3 steps
1) Time horizon: If staying 7–10 years, buying usually wins due to principal build-up, tax shields, and avoidance of rent hikes. If horizon
2) Cash flow safety: Keep combined fixed outgo (EMIs + rent if any + school + insurance) under ~40% of net income and maintain a 6–9 month emergency fund, post-down payment.
3) Relative value: If the all-in cost per sq. ft. you pay is at or below recent resale comps for similar units, and rent would soon be Rs 35–40,000, buying is attractive.
Negotiation tips
> Use quick, clean execution as leverage: 10–15 day closure, proof of funds, and sanctioned loan in principle.
> Price nibble with data: Share two or three registered sale references and society condition notes to seek a modest reduction or inclusion of white goods/parking rights.
> Split minor repairs: Get written agreement on responsibility for seepage/structural fixes identified in inspection.
Action plan
> Get three recent registered comps, plus a bank tech valuation.
> Complete legal/technical due diligence in parallel with loan pre-approval.
> Lock a competitive floating rate; set a standing prepayment plan starting month 31 when current EMIs end.
> Preserve at least Rs 6–8 lakh in pure emergency liquidity after down payment and closing costs.
If due diligence confirms that Rs 80 lakh is at or below fair market for a 1500+ sq. ft. gated 3BHK here, buying now is sensible. The family’s income supports the EMI easily, rent inflation risk is rising, and the micro-market’s end-user demand and infrastructure pipeline favour long-term ownership.
(Views expressed by the expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)
Hi, I am 30, married with a 1-year-old son, and currently living in a 3BHK near Bommanahalli, Bangalore. Rent + maintenance is Rs 22k, but my landlord (based in the US) now wants to sell the flat for Rs 80L (1500+ sq. ft., gated society). I like the house and find the price reasonable. My take-home is Rs 2.4 lakh/month, my wife earns Rs 1.1L/month. Together, we spend ~Rs 60,000 on household expenses, Rs 43,000 on EMIs (ending in 2.5 years), and invest ~Rs 1 lakh/month. We have a Rs 20 lakh down payment ready and plan a Rs 60L home loan (15 years, ~Rs 60k EMI). Should we buy now or continue renting, given rents may rise to Rs 40,000?
Advice by Animesh Hardia, Senior Vice President, Quantitative Research at 1 Finance
Buying looks financially sound if the property is genuinely worth Rs 80 lakh today and the family intends to live there 7–10 years. Cash flows are comfortable, location fundamentals are strong, and rent inflation risk is real. Still, run the checks below before signing.
Why this can work
> Strong income cushion: Post-purchase, total EMIs ≈ Rs 60,000 (home) + Rs 43,000 (existing, for 2.5 years) = Rs 1.03 lakh/month. Against a joint take-home of Rs 3.5 lakh, EMI-to-income is ~29% now and ~17% after old EMIs end—well within prudent ranges.
> Stability premium: With a 1-year-old, staying put in a known gated society has lifestyle value: commute, day care, safety, domestic help continuity, and social network.
> Rent vs buy math today: Current outgo is Rs 22k. Market rents can move toward Rs 35–40k in sought-after 3BHK gated projects. Locking an EMI near Rs 60k for ownership (with part principal build-up and tax benefits) narrows the effective gap versus renting, especially over time as rent escalates.
> Micro-market momentum: Bommanahalli/Southeast Bengaluru has seen fast, demand-led absorption, strong connectivity upgrades, and proximity to IT hubs—drivers that typically support end-user prices and rental depth over a holding period.
Essential diligence before committing
> Price sanity check: Do not anchor to the landlord’s quote. Validate with at least three recent registered transactions in the same society or two nearest comparable societies (similar tower age, floor, view, size). If average realisations point closer to Rs 1.0–1.2 crore for 1500+ sq. ft., an Rs 80L ask is a bargain; if true market clears near ₹80–90L, then you’re at fair value. Make the price reflect the floor, light, car parks, UDS share, and society conditions.
> Legal and technical: Get a title search, EC, RERA status (if applicable), OC/CC, sanctioned plan/building deviations, society NOC, and a structural/technical review (plumbing, seepage, electricals, lift, STP). This is low-cost risk removal.
> All-in cost budgeting: Beyond Rs 80 lakh, add 7–9% for stamp duty/registration, advocate + technical fees, society transfer, brokerage (if any), small interior refresh, and moving. With Rs 20L down, ensure 6–9 months of expenses remain in liquid buffers after closing.
> Loan terms: For a Rs 60 lakh, 15-year loan, a rate change matters more than small price haggles. Negotiate a step-down spread with a top lender, autopay + salary-banking benefits, and a low/transparent conversion fee for future rate cycles. Target prepayments once current EMIs end to finish in 10–12 years.
> Exit and liquidity: Confirm resale depth in this society—number of past resales, time-to-sell, and discounting needed. A liquid society is part of the return.
Rent vs buy in 3 steps
1) Time horizon: If staying 7–10 years, buying usually wins due to principal build-up, tax shields, and avoidance of rent hikes. If horizon
2) Cash flow safety: Keep combined fixed outgo (EMIs + rent if any + school + insurance) under ~40% of net income and maintain a 6–9 month emergency fund, post-down payment.
3) Relative value: If the all-in cost per sq. ft. you pay is at or below recent resale comps for similar units, and rent would soon be Rs 35–40,000, buying is attractive.
Negotiation tips
> Use quick, clean execution as leverage: 10–15 day closure, proof of funds, and sanctioned loan in principle.
> Price nibble with data: Share two or three registered sale references and society condition notes to seek a modest reduction or inclusion of white goods/parking rights.
> Split minor repairs: Get written agreement on responsibility for seepage/structural fixes identified in inspection.
Action plan
> Get three recent registered comps, plus a bank tech valuation.
> Complete legal/technical due diligence in parallel with loan pre-approval.
> Lock a competitive floating rate; set a standing prepayment plan starting month 31 when current EMIs end.
> Preserve at least Rs 6–8 lakh in pure emergency liquidity after down payment and closing costs.
If due diligence confirms that Rs 80 lakh is at or below fair market for a 1500+ sq. ft. gated 3BHK here, buying now is sensible. The family’s income supports the EMI easily, rent inflation risk is rising, and the micro-market’s end-user demand and infrastructure pipeline favour long-term ownership.
(Views expressed by the expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)