Stay on rent instead of home loan, you can buy 2-3 houses together with EMI money
Buying your home can be an emotional decision, an economic one. If you have not decided where you want to settle down, then buying a house will only add to the hassle.
Buying your home is the dream of most people. It is more an emotional decision than an economic one. If you are told that renting is better than buying your own home, it may sound ludicrous. Although this is true and its mathematics is also very simple. Today we are going to tell you this maths. We will also tell you what the experts say about this.
The cost of your dream home depends on many factors. For example, whether you are building a house or buying a ready-made one. Apart from this, many factors including location, public transport, medical facilities affect the cost. Let us keep an example for ease of understanding.
EMI can be so much on buying 2BHK
Let's say you are planning to buy a 2BHK flat (2BHK Flat) in a multistorey apartment. In the new residential societies being built in your city, its cost is Rs 35 lakh, let's also assume that. Now if you go to buy this, then you will need to make a downpayment of Rs 5-6 lakh. Apart from this, you will also have to keep cash for Stamp Duty, Registration Charges and Brokerage etc. In total, you will have to spend 10 lakh rupees out of pocket. Because a house of 35 lakhs will cost Rs 38-40 lakhs including the rest.
For the remaining 30 lakh rupees, you will get bank finance from the bank. If you meet some other parameters including credit score, then you can get a home loan at an interest of around 8 percent. At 8 percent interest, EMI is made on a home loan of Rs 30 lakh for 20 years, about 25 thousand rupees. After spending 10 lakh rupees, you will have to pay about 25 thousand rupees as EMI every month.
If you stay on rent, you will be able to invest so much
Now let's look at the second situation. If you take the same flat on rent, then you can get it for 10 thousand rupees. If you look like this, every month you have 15 thousand rupees left for saving. Now if this 15 thousand rupees is invested by making a good strategy, then a fund of crores can be created. Anyway, there are many great instruments available in today's time for better returns.
SIP is a great option for great returns
SIP is considered to be a good instrument in terms of giving more return on less effort. Returns of 10-12 per cent are common for SIPs. If you invest Rs 15,000 every month for 20 years in a SIP with 12 per cent return, you invest Rs 36 lakh instead of paying interest to the bank. After 20 years, it will make a corpus of about Rs 1.50 crore with you. 15 per cent return is not a big deal in case of SIP. If you invest money in such a SIP, then after 20 years you have a fund of about Rs 2.28 crore ready.
Apart from this monthly EMI, you also have a lump sum amount of Rs 10 lakh to invest, which you were going to spend out of pocket on downpayment to paperwork. If this 10 lakh rupees is invested in the lumpsum scheme, then after 20 years you will have more crores ready. In 20 years, this investment will be around Rs 97 lakh at the rate of 12 per cent and Rs 1.64 crore at the rate of 15 per cent.The value of the old house also decreases
On the other hand, if you buy a home, it will take you 20 years to become debt free. Real estate rates in India grow at the rate of 5-6 per cent annually. If you look at this basis, the house you are getting now for Rs 35 lakh, you will get it after 20 years for Rs 1.12 crore. If you buy the house now, in this case its value will not increase accordingly.After 20 years, Rs 1.12 crore will be of the same type of new house in the exact same location, not the old house. As a property gets older, its value also decreases. The same old house becomes cheaper than a brand new house.
You can deposit funds up to 4 crores
In the event of the first decision, after 20 years, you can have a fund of about Rs 4 crore. This translates to a return of 15%. Even if you get 12 per cent return, then after 20 years you will have a hefty corpus of around Rs 2.5 crore
In this way, investing wisely while living in a rental house can be many times more beneficial than buying a new house. After 20 years, you can stay in profit by buying exactly the same house. Not only this, but by adopting this method, you can buy 2-3 houses exactly like this after 20 years
