EMI vs Rent: Decoding the Homebuying Dilemma in India's Soaring Real Estate Market

• First-time homebuyers in urban areas face a dilemma: buy with a home loan (high EMI) or rent (lower monthly expense).
• A typical Rs 80 lakh home loan results in Rs 70,000 EMI, while rent for a similar 2BHK is Rs 30,000-40,000.
• Renting offers flexibility, lower monthly spending, and allows investing the differential amount (e.g., Rs 40,000 SIP can grow to Rs 4 crore in 20 years).
• Buying makes sense for stability, long-term stay, and potential property appreciation, especially in tier 2/3 cities where EMI-rent difference is smaller.
• Financial advisors suggest buying if rent covers at least half of EMI; otherwise, renting and investing the difference is often more beneficial.