Question 1

Is it better to rent or buy a home in India?

Accepted Answer

It depends on your financial situation, city, and tenure. Buying builds equity but has high upfront costs. Renting gives flexibility. Generally, if you plan to stay 7+ years, buying may be more economical.

Question 2

What is the price-to-rent ratio?

Accepted Answer

Price-to-rent ratio = Property price / Annual rent. A ratio above 20 means renting may be more economical; below 15 means buying may be better. Most Indian metro cities have ratios of 25-35, favoring renting.

Question 3

What costs are involved in buying a home?

Accepted Answer

Down payment (20%), stamp duty (5-7%), registration fees (1%), home loan processing fees, maintenance, property tax, and insurance — these add 25-30% over the loan amount.

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