Renting vs Buying Home: Making Wise Financial Choices

Fools build houses and wise men live in them.

According to investment experts, renting a home might be a better option

Banks typically only grant home loans for 80% of the cost of the property; the remaining 20%, along with stamp duty and other costs.

Experts say renting can be a better option if your profession requires you to move frequently.

Expert suggests an interesting strategy-

If you want to buy a ₹35 lakh property, the actual cost might be closer to ₹40 lakh, factoring in additional expenses. With banks typically disbursing up to 80% of the property cost as a home loan, you'd get around ₹28 lakh. Using mutual funds SIP (Systematic Investment Plan) with the surplus home loan EMI could yield around 12% annual return over 20 years.

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