Rent vs. Buy: The Millionaire Formula 99% Miss for Homeownership

• The debate between buying a house and renting is a hot topic, often driven by emotion rather than financial reality.
• For a monthly salary of 50,000 rupees, managing EMI, expenses, and savings is challenging; a 10-20% down payment for a 40-50 lakh house requires significant upfront savings.
• Buying offers stability, potential appreciation, and mental satisfaction, but involves a long-term financial commitment where EMI shouldn't exceed 30-40% of income.
• Renting provides flexibility for job changes or relocation, allowing the large sum saved from a down payment to be invested in mutual funds, SIPs, or stocks.
• Investing 15,000 rupees monthly in an SIP with a 12% annual return could accumulate 1.5 crore rupees in 20 years, potentially making one a millionaire.

Why It Matters: Choose renting or buying based on financial reality, not emotion, to optimize wealth creation and flexibility.