Buying Home vs Renting House
Buying Home vs Renting House is one of the most common debates in personal finance. We have explored this debate in depth, accounting for majority of the external factors that could influence the decision.
Mr. Sandeep Tyagi, Founder & CEO of Estee, discussed this in our investing webinar series – Minimalist Art of Investing. If you would like to watch the session, do watch it here.
Factors considered in the Template:
- House value appreciation
- House value
- Charges: Stamp duty, Registration, Brokerage
- Loan amount, Interest rate, Loan duration, EMI
- Down payment
- Rent as percentage of House value
- Rent appreciation
- Investing returns
Buying vs Renting template can be better used with context around housing price trends. Despite contributing significant share to Indian GDP, only limited data on Residential housing is available for investors. We found two reliable data sources for housing prices: Housing price Index and NHB Residex.
The index aims to track pricing trends in residential home prices across 13 cities of India. The index also tracks the index trend separately in top-8 cities of India: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Pune, Delhi NCR.
As the major chunk of residential homes are in the form of 1-BHK, 2-BHK, and 3-BHK, the index considered these three properties prices trend. This index helps investors, home buyers, and other stakeholders to evaluate the opportunities in housing market. Housing.com has started collecting and tracking this data since Jan 1, 2017.
Housing Price Index
We have written two blogs associated with Real Estate, Buying vs Renting.
The first blog explains about housing price index and its limitations.
The second blog is about REITs, which allows retail investors to invest small amount in Real Estate. The blog explains about retail and commercial REITs along with the available REITs to invest.
Mr. Sandeep Tyagi
Founder and CEO, Estee Advisors
Sandeep has 30+ years of experience in portfolio management, analytics, and consulting. He pursued Bachelors in Technology from IIT Delhi and MBA from Columbia Business School.