'A 20-yr EMI can kill your flexibility': Finfluencer says middle class walking into a debt trap

Finfluencer Akshat Srivastava has issued a strong warning to India’s middle class against rushing into homeownership based on the often-repeated pitch that “rent equals EMI.” In a detailed post on X, he argued that this seemingly simple logic can trap people into decades-long financial commitments without fully considering the long-term consequences.

Srivastava explained that while many believe paying an EMI instead of rent is a smarter financial move, the reality is far more complex. “You get locked into paying an EMI for multiple years. This kills your flexibility,” he said, noting that life changes—such as job loss, relocation, or evolving personal needs—can make long-term home loans risky.

The finfluencer highlighted additional challenges, including project delays for under-construction homes, which can disrupt timelines, and the possibility of real estate turning into a depreciating rather than appreciating asset. Citing examples from Delhi’s Dwarka and Rohini, he pointed out that many flats in these areas have lost value over time.

“Just the obligation of locking yourself into a 15–20 year loan is crazy,” Srivastava wrote, adding that no spreadsheet can truly capture the compounding stress of long-term financial commitments as one ages.

For those in their 30s contemplating a house purchase, Srivastava advised ensuring that the property is a genuinely sound investment that can grow in value even after adjusting for inflation. He urged prospective buyers to thoroughly assess affordability and repayment capability over two decades.

“For anyone unsure,” he concluded, “it is much better to rent.”

Netizens largely agreed with Shrivastava's take, some saying that a 20-year-long EMI indeed changes a lot.

"The biggest hidden cost of buying a house isn't money, it's optionality. A 20-year EMI changes career choices, mobility, and financial freedom," a user commented.

"Your 'flat' is a 'flat' it's not a 'ghar'. If you can't buy a piece of land, rent," a second user wrote. "Until then, NRIs will pump in more cash and inflate a 1cr worth flat into 2 cr worth within few years," a third user said.

A fourth user said: "Rent = EMI. ignores risk. An EMI locks you in for decades, while your job, city, and property value can all change. If you’re not fully certain, renting is the safer, more rational option."