Rent or buy a house? Rs 72,000 home loan EMI vs Rs 35,000 rent - CA's math sparks debate

For many urban Indians, the dream of homeownership remains elusive despite some relief in the rental market. In 2025, rents in major metros such as Bengaluru, Delhi, Mumbai, and Hyderabad grew at a more moderate 7–9%, compared with the staggering 15–25% annual hikes between 2021 and 2024. The correction is largely due to new housing supply easing demand pressures. Yet, the gap between monthly rents and steep home loan EMIs means that buying still feels much more expensive than renting.

The rent vs. buy debate has long divided salaried professionals and middle-class families. Renting is often viewed as wasteful, while purchasing a home with a loan is seen as a wise long-term investment. But financial experts argue the decision depends less on convention and more on individual circumstances, income stability, and timing.

What's the math

The conversation was recently reignited by CA Nitin Kaushik, who took to social media platform X to challenge the common belief that “rent money is wasted.” In his words:

“The ‘Rent is Waste’ Myth That’s Costing You Lakhs. ‘Rent money is wasted’ is the biggest scam middle-class families believed.”

Kaushik explained that home loan EMIs often exceed rent payments by a wide margin, especially once interest outgo is considered. He illustrated this with a calculation:

Price of house: Rs 1 crore

Loan amount: Rs 80 lakh

Interest rate: 9% over 20 years

Monthly EMI: around Rs 72,000

Total repayment: Rs 1.73 crore

This means the borrower ends up paying nearly Rs 93 lakh in interest alone — far more than the cost of renting a similar property for years.

“Rent isn’t always a waste. It buys you flexibility and liquidity. A home loan isn’t always investment. It’s leverage and liability,” Kaushik concluded.

Why renting can make sense

Kaushik highlighted the hidden costs of ownership that often go unaccounted: property tax, maintenance charges, and repair expenses. Renters avoid these and enjoy mobility — the ability to relocate easily if a new job or opportunity arises. They also retain liquidity, meaning funds that might otherwise be locked into a property can instead be invested in financial markets, potentially offering higher returns than real estate appreciation.

He cautioned that ownership only makes sense if families are financially prepared:

Maintain a strong emergency fund.

Ensure EMIs do not exceed 25–30% of income.

Run the numbers carefully before committing.

Without these safeguards, a dream home could quietly turn into a financial burden.

Deciding what’s right for you

Experts caution that there is no one-size-fits-all answer to the rent-versus-buy debate, as the choice depends on multiple factors. Financial stability plays a central role, since mortgages lock borrowers into decades of repayments that demand a steady income, while renting offers agility when circumstances change. Job mobility is another consideration, with professionals in transferable roles often finding renting more practical. Likewise, long-term goals matter—buying provides security and stability, whereas renting preserves liquidity for investments or lifestyle needs. Market conditions also influence the decision, as rising property values can make ownership lucrative, while stagnant or falling prices favor renting. Finally, lifestyle needs such as proximity to workplaces, schools, healthcare, and neighborhood amenities often carry as much weight as financial calculations.

Financial decision

Renting vs buying is not just a financial calculation but a deeply personal choice shaped by income, aspirations, and timing. For some, homeownership symbolizes stability and pride; for others, renting offers the freedom to adapt and grow. What matters most, experts say, is making the decision with clear-eyed math rather than myths.