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Rent VS EMI- How to Make the Right Choice

Source: Sooper Articles


Buying a house defines the arrival of success in their own life. And sometimes it also arise question whether to buy a house or rent a house.

Buying or renting a place purely depends on the individual economic status and how well they can handle it. So whenever you get baffled about these issues, follow these simple steps to make your decision trouble-free.

Financial Stability- EMI

First and foremost factor which comes into picture while buying a home is your financial status.

Depending on that you can decide whether to buy a house or rent one, Even though you have found property which descries your needs perfectly you should be capable of fulfilling EMI.

Find out the full cost of house and calculate EMI, if it matches your financial stability.

If the total amount is more than 75 percentage of what your projected EMI is going to be, then it is better to buy your new house.

Direct sum you can afford

Commonly you are entitled of home loan up to 80 percentage of the sum. So the remaining amount i.e. 20 to 25 percentage you have to give from your own savings as upfront payment.

If you purchase a house worth 60 lakhs, through loan amount you can get nearly 48 lakhs, which results in EMI of 50,000rs, depending on in progress rates.

So if your EMI consumes more than 40 percentage of your monthly income, then you need to re-evaluate your decision about buying. If you can pay half of your home sum or more than that i.e. 50 percentage then without any difficulty you can go for buying your house.


You have to make sure to complete pre-payment of your loan within a few years of commencement .Take into account that habitual payment of EMI will give you much needed reduction, as soon as you start on pre-payment. Calculate on your financial status so that you can clearly see the future in few decades

Pre-paying a tiny sum such as 10000 Rs, in a plummeting EMI plan, will help you in make some good quality funds while buying house. So that you can decide buying or renting.

So thus while buying a home its necessary to make large sum of investment at the first, or else due to the bulky interest of banks you may not benefit from the investment.

Similarly you can go through your financial status before investing otherwise you will be trapped in large debt for long moment in time.


If you can invest more than 50 percentage of total value of project, then don't look back just go for buying house.

Buying or renting a house depends on, in which the rent you are paying will be same as amount you pay as EMI.

Your financial status for pre paying the loan amount in a given period, then you can buy a new house.

8 years ago


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