Excel Sheet download link- drive.google.com/uc?id=1OIHMhIKI3_jq1itHqB_B2VcVoBYUTC2T&export=download

Couple of things that this video missed. 1. First and foremost, EMI will stop after 20 years, but rent will never stop, even in your 70s 2. With inflation interest rate also go up. True but rent goes up exponentially whereas interest goes up linear with at cap at around 12%. 3. During deflation (like covid times) interest comes down but rent does not. 4. You can make a very significant impact on the interest you pay just by paying couple of emis in advance as principal every year.

@sanjaykartari6835

3 ай бұрын

What if your building collapse bcoz of earthquake. You are Homeless with no money & age is running. Mera ek hi funda hai Agar 3 ghar lene ki capacity hai toh ek ghar kharidlo without loan. Or Agar loan pe le rahe ho toh tabhi lo jabhi kam se kam 2 ghar kharidne ke paise ho. Samjha Flat cost Rs 50 lac Take loan when u have Rs 1 cr portfolio. It become easy for u to pay emi. If u buy it on cash than should have atleast 1.50 cr. So that u can build more wealth.

@abhijitkhopkar1500

3 күн бұрын

@@sanjaykartari6835 Why do houses appreciate over time and don't depreciate unlike cars even though the structure is getting older and has a finite life span? Because the land underneath the building is an ever appreciating asset. Even if your house gets demolished, you can rebuild it if you own the land underneath. Construction doesn't cost that much. Even in case of a massive Earthquake your land isn't going anywhere.

Maybe this is applicable on the second house and onwards, but having your own house is more than just maths. Even if you consider it an expense, we make money so that we can spend it, and being the owner of your house is totally worthwhile, even if it doesn't make sense on your spread sheets. Also, reliance, hdfc might all fade away but a house is for CENTURIES, so you can see it as diversification into a safer asset class that will obviously not make as much returns. I would even argue that a house is safer than an fd

@myurbantiffin

Жыл бұрын

You will always pay rent less than your emi which can be almost half of your emi So invest half of your emi money into equity for 20-25 yrs and make a corpus to buy that house after 25 years and live on rent for 20-25 years. So you will not only buy a house after 25 years in ur own but you can live a free live by living in a rented place. Think as you are paying emi and after 20-25 years you will complete your emi and that house will be yours after 25 years which is same as buying after 25 yrs from ur saved money

@ramyasri6093

Жыл бұрын

​@@myurbantiffin being so disciplined for 25 years& investing instead of EMI is difficult than we anticipate

@gprocky2010

Жыл бұрын

Everyone is different. your life views are applicable to only you. About money spending- there are 1000 other ways also.

@sanjanind

Жыл бұрын

If you want a home then purchase a land and build a home, don't go for appartment. Its has -ve return. No one want to purchase a old appartment at appreciated price. And purchasing home is emotional decision, and dont do emotional decision incase of money

Really this debate covers all the aspects and gives clear and to the point knowledge...hard to match this level of details and logic. Hats off to team.

Brilliant. Renting is better but the emotional and comfort factor is there in buying. Very well done video

Very neutral perspective and informative. Thank you team

Superb analytical review !!! subscribed

awesome presentation, complete open comparison, kudos to both the actors for best acting and clarity..

This calculation applies only for investment homes!! Everyone needs one home to stay and if you have enough money to make EMI, you need to buy one!! Take the same calculation and check what happens after 20 years. In home buying scenario person need not pay any rents.. But a person on rent keep giving rent till his death.. If you are paying 20k today you need to pay 80k in next 20 years.. Can anyone earn high salary till death? I have fallen for similar calculation 10 years ago in Bangalore when prices of houses were around 40 lakhs for 3BHK. And an independent house for 60 Lakhs.. Today same house costs 1.5 - 2 crores. I am paying 3 times rent. Invested money in Shares is not enough to buy a home.. Biggest thing is i need to keep paying the rent.. If i had bought a property today i would have own it completely.. So life does not run on excel sheets take your decision outside just excel sheets

Superb Discussion..I love all your discussion,weather it is regarding equity comparison or like this...

Wonderful debate, quite comprehensive. Also being rational amd financially aware is good, but I am with audience in this debate. Also, when the time finally arrives to buy a home, the property rates would have skyrocketed and the earning horizon would decrease which may affect a person's ability to take a bank loan.

Thankyou both of you. Its crystal clear now

Thank you mandar and aastha

Yes, I agree with you 💯

Once again I m with Aastha. Nicely explained

Very good discussion and very informative.

Great discussion, wonderful, ❤

Thank you In this video Last 3 point is very important for me

Kya baat hai very knowledgeable video

Nice knowledgeable video

Very good

Buying or renting a house primarily depends on the circumstances and resources available with the individuals.. Buy or rent but one should live stress free and happy..

City shift hone se kya hoga buy Kiya hua ghar rent pe lga do and jis City me rho wha rent pe rah lo . Buy option jyade better hai rent ki wajay,

Great.. 👍

In renting, diposit given are reduced to half when owner return it while leaving the apartment. While if I invest it would have double in few years.

Bottom line is (as said in this video itself), ye dil or dimag wala mamla hei :) - very good explained

Very good role play ....i represent Mandar in reallife and aastha represent my colleague. Would apply he lesson learnt for my next housing decesion The only issue is the rate of returns either in equity or mf is not huge . My last 2 yrs returns are pathetic - NPS managed by HDFC is less than 2% - popular SIP small case is less than 4% - SIP in Mf is less then 4% Equity ....dont ask😢 😅 In such scenarois our old friends like rent , FD give consistent returnz and hence a ll go back to them for some assured returns

Summary - buying arguments are mostly emotional, renting arguments are logical/financial, choice is yours. As a footnote, people who take emotional decisions on matters which have a financial implication run the risk of going badly wrong.

@iXpress

Жыл бұрын

Life is all about Emotions & finance is to make you full fill your emotions...what's the use of money if it's not about Emotions???

@YASHHHHHHHHHHHHH704

9 ай бұрын

Bt if dont manage you finance you emotinal well being will be gone

धन्यवाद

I don't have commitment to stay at my owned house. Still bought it, rented it out and got money to rent at another place.

You missed shifting charges and wear and tear of furniture while shifting

When you change home u have to pay brokarage 2% every time, like Mumbai City how you change every time of tented house.

@manishdwivedi7855

11 ай бұрын

Brokerage is 1℅ which will go upto 2℅

Nice video, but people forget of resale value of the house which allows growing up

Especially in case of apartments, the value goes down after a decade or so, as the building starts to age, cracks develop. Also, the value of real estate can remain stagnant for longer periods if the surrounding areas of your property are not developing.

@ramehtag

Жыл бұрын

Well apartment value reduce but not on the buying price but on the market price but it could be still 3 to 4 time the owner buying price which can be consider good return on investment.

@manishdwivedi7855

11 ай бұрын

Consider redevelopment

Consider this - Landlords usually don’t give all of your deposit. - Your deposit is earning interest for your landlord - You’ll feel anxious till you don’t have a home - Most professions will have work from home in the future for most jobs. You’ll have a home office and your company will need to rent out your space for you to work in (I hope), in such a case you’ll need a good home Best way to save up in index funds and buy with the whole amount a dream home.

The flat I am staying, suddenly owner made 25K per month to 38k per month. Where 8% increase in rent each year is not applicable. I am talking about Hyderabad. One thing missed in the video, each month tenant pays the maintenance, it's not owner who pays maintenance.

Thank you for the interesting video. What if a person has full money to buy the house. In such case, what is better

@devalpatel552

Жыл бұрын

It also depends whether person is purchasing it for living or renting. 1) Living, there are certain points discussed which we can check.. e.g. job or business stability,willing to live in same city for few years.. 2) Renting: we need to check if we can get better returns in other assets like equity, commercial property or gold

Good Aastha

Buying or renting jo bhi ho... I want these two as neighbours 😂

Rented property mai bhi maintenance cost jata h and kuch bhi extra khrch ata h wo bhi krna pdta h , and rent ap lifetime nhi de skte ap kuch to apni k liye bna k jaoge ya wo bhi apke bad rent dete rhnge

1. tenant has to pay maintenance every month just like owner 2. the painting quality in rented house is so bad that the walls should be re painted in every 2 years which never happen tenant has to stay 3. if the tenant change the house in every 2 years then 2nd point does not hold but there will be a loss if 1 month rent + extra amount cut from security deposit 4. for flexibility people try to move to better location in case of rent which means the rent increament rate is not 8 % , some times it is more than 25 % 5. after 60 you cannot buy a 2 cr house property which was 65 lac , and not even in a position to pay 2 lac rent every month, on other hand home owner can live happy life after retirement

@improvelivingandlearning

16 күн бұрын

Our landlord never did any maintenance always on us. We are living here just because rent amount and travel to work time convenience

No, you should consider factual scenario like .. on rent you may be asked to vacate the premises within 3 years and you may not be get flat in same area, here if you get flat which may reasonably away from your vacated flat and again if you calculate distance of your/wife office, school of children from new flat here you have to spend more money on travel & of course on food, then change in address every where. More important secure place for family. Rental means ना घर का ना घाट का?

One own house is not called 'house'. It's called "home" May be investing in residential property for rental income is not advisable but having one own home is a must. Those who have a lot of cash income also invest in property and gold.

@gprocky2010

Жыл бұрын

I just want to know when a person fills a column of Home Address - do they leave it blank and demand for house add 🏡🏠🏢

I support Aastha. Because I have a transferable job and down payment will affect my economic condition

Buying is a no brainer, if you keep on increasing your EMI you can pay off the loan by 12-10 years or less(just taking rough estimate), then you can invest in different assets or start some business atleast you have a roof over your head for which you don't have to pay money, worst case happens you can always give it on rent and generate extra income

I think the calculation for excess EMI are wrong. You are assuming your excess EMI will remain same throughout 20 years, which is not the case since your rent will increase by 8% but your loan EMI will remain same averaged over 20yrs, so excess EMI will reduce every year and will even go negative after 12-15 years. If you do the calculations keeping this in mind your savings and opinion might change.

I always think Astha way.. She's cleaver in this topic.. Her communications skills are great...

This could be made with tax savings also in account then I think it will give fair idea

90% logo ko ye analysis samaj bhi aya hai, per apne dunning Kruger effect se bol rahe hai apna ghar toh apna ghar he hota hai😂.

Once you buy a home and start paying emi, you become more averse to unnecessary spending.

Any time land owner can come and tell next month empty home.

If I buy house in Hard cash. Please comment on it !!!

Jab koi income nai hogi tab rent kese denge

Average expected return on investment has been coming down drastically over the years by the so-called fund managers...average expected return on equity has come down from 40 to 30 to 20 to 18 to 15 to 12 in such a short time..The interest cycle will come down, we will see home loan interest coming down to 6% or even less in India... Over time, rental yield will be more as it had stagnated for some time now..

Appreciate your efforts but You guys forgot to calculate the tax benefit in your magical Excel sheet, which the borrower receives on the home loan principal and interest amount, totaling 3.5L, resulting in 3.5 * 20 = 70,00,000. Now saving more than renting option. Equation solved!! The fundamental idea is that the value of fixed assets, such as real estate, tends to increase by 12% to 13% per year, while home loan interest rates are typically only 7.5% to 9%. This means you're effectively earning 3-4% on the borrowed money from the bank.

If everyone think about renting then who will be a landlord of your house 😂😂😂😂

Which world you are living in? 8% rental increase? Ever heard of Gurgaon/Bangalore? My rent has increased 30% recently in gurgaon. Overall Gurgaon rent has increased 20%. In premium societies 40-50% rent increase has become very common. Now revise your calculation.

Renting is better if you well known of financialy aducated and grow your mony yearly good % objectives

Simple thing, if people are more attract towards rent, then buy a property and attract goid rent yield from them..

According to me, buying in better

in Bangalore rents increased 100% in 6 months. Renting is not always better. if you loose job. At least your family will have roof over head.

@wisecrackmelmoc2301

Жыл бұрын

If u lose job u then who will pay emi ?

@IMRANKHAN-nw5fz

Жыл бұрын

@@wisecrackmelmoc2301 Think wisely Rent will always increase. Emi is fixed or will reduce. your children will grow in good Gated community. you can try to repay loan fast or invest in MF for more returns. Worst case you can sell House.

This discussion is very premature thought process. If you cannot afford home now, stay in rented house and save for downpayment and other charges for buying your house first. After certain period buy the house with your money and partial loan. First home is the must. Coming to second question on shifting to other city. Give your first house for renting purpose. That way you will be able to pay portion of your first house EMI and leave in rented apartment in different city for time being. Meanwhile if you want to sell first one which not recommended, you can do so and buy next home in new place. Moreover, if you wait for 10-15 yrs to buy home, current cost of home will increase with inflation rate or more than that rate, so you will always have shortfall of your invested income to purchase house after all those years as well. Taking loan will give you leverage to purchase with less amount of downpayment today. Your loan amount should not be more than 30% of your income. This advise is subjective to person’s income source.

Owning a House is not a matter of Finance, it's Emotion. Purpose of Finance is to be able to Full Fill your emotions. It's about Self Assurity, it's about feeling of Ownership, it's psychological edge & confidence for your family. Don't fall for these champu 'finance' experts. Even Big MNCs own their Head Offices. All Top Bankers own houses. Earn money to make meaningful Life. Buy a House.

Friendly team 😂😂😂😂

EMI burden > = ? Peace of mind Think about it. Then decided

I don’t agree with useless discussion that all fin influencers do. Practically nobody will pay emi for 20 years. People mostly after salary hikes prepay loans in 5 to 7 years.

1. Currently interest rates are high but as economy grows, they will go down. 2. Repair and maintenance are put on the shoulders of tenant by owener. There are exorbitanat deductions from deposit while leaving. 3. You don't get tied to a location by buying, you can put it on rent and take the rent in another city. 4. The figures can be twisted in any direction since you have counted 10% interest rate in other investment while only 7% for home. 5. Yes, initially EMI is higher than rent but rent increases every year, EMI doesn't.

@wisecrackmelmoc2301

Жыл бұрын

Yes sir I haven’t opted to increase emi . Buy tenure has now reached 78 years because interest rate has reached 9.1% . What to do now . I lost my job also

@abhijitkhopkar1500

Жыл бұрын

@@wisecrackmelmoc2301 These kind of economic recessions are once in a decade phenomenon, it will get over with time. Interest rates will go down once feds start cutting interest rate with inflation in check. You can withdraw your PF if you are unemployed for three months. You can use it to pay EMIs. Have some faith, you will get a job soon.

Asstha har baat jeetti hain bhai. Mandar uske saamne jaise Wasim Akram ke saamne Sadagoppan Ramesh 😂

Wrong calculation, the excess EMI on rent will decrease with increase in rent. After few year rent will be more than EMI. I want to see that calculation.

Buying a house makes sense only if it’s emotional and u don’t take a loan

Best solution: Accumulate and invest a significant amount in equities to arrange for your retirement. Once you are done with this, buy a house.

Junk renting option

I bought a house, took 20 years loan and completed it in 9 years tops. just bought another house as my daughter turns 2, planning to hedge it's EMI to the rental of second property. EMI is constant but rental keeps growing. I also tried my hand in investing, lost close to 5 lakhs in due time mostly due to over investing or choosing wrong picks (yes bank anyone?). Thing is investment is risky, you put your money on firing line in the hope that it will grow, it might grow but there is a probability that it will get lost too. you might think you are intelligent but intelligent people often don't make money in market. "renting makes more sense based on financial perspective" is a lie in most cases, show me the people who put their (EMI-rent) value for 20 years. We are humans and keeps falling for shiny ads, also once investment goes down, most of the people does not have the temperament to not to restructure their investments. maintenance in most cases are paid by renter, repair is often taken out from deposit. rental income is a healthy cash flow for owner. You may lose your job but if you lose your renter, you will get new renter much faster than new job.

@naseemahamad3006

9 ай бұрын

Your logic makes absolutely no sense

shadi hogeye kya !!! phit bee scope he na😂

Equity 😅 , mutual funds 😅

First home buying is always emotional.. even birds makes nest it’s hard coded in genes… only business guy can think like the madam is expressing only 0.5 percentage of population can think like madam …

Loan EMI ki capacity nahi hai to 20 year SIP kaise pay kr after rent Btw bank se aap home loan ki closer data dekhoge to average 8 se 9 year me home loan close kr dete hai, 20 year koi loan pay nahi krta 😂😂😂

The richest person on earth (Elon Musk) also stay on rented properties. He sold most of his properties

@nnaman007

Жыл бұрын

Yeah normal people totally have the same micro economics as a billionaire

@devalpatel552

Жыл бұрын

It is not like following him blindly. The point is he doesn't feel that he should own house even though he can purchase many. While we as normal people (earning very very less) buy houses even if we can manage without it for certain times. I like his point of View or rationale. House is a house, even for billionaires. I don't know how that requirement will change for them. Also, we can check how many billionaires are living on rent? Almost negligible...

@nnaman007

Жыл бұрын

@@devalpatel552 He doesn't need a house to feel secure financially. He can buy it whenever he wants like we can buy candy whenever we want. It's just a chore to keep buying and selling instead of renting. Plus I'm sure he still has 10+ homes

@iXpress

Жыл бұрын

But 99% Billionaires own Houses, more than 1. So which makes more sense 😂

One supercycle of real estate is due soon.

Title is in English but speaking in Hindi. Why?

If you look at home buying from simply a financial perspective, it's a very myopic view of your overall life. Do give this a thought. :) Mandar's arguments represent the normal, realistic, and practical view of life.

@sudip_curiousmind

Жыл бұрын

Normal also equates to average, in most cases, so being normal you will be average, nothing wrong in it but make sure you are OK being average. I am saying it in a broader context not just buying a house.

This analysis is overrated .. buying a house for living is an absolute no brainer

😂😂😂😂😂

Please English

@nachiketdaithankar4405

Жыл бұрын

Subtitles would help. Hindi gives them a much wider reach.

@kashyappoza

Жыл бұрын

Learn Hindi

@RohitKanojia7

Жыл бұрын

@@kashyappoza 🤣

@lakshmitejas1685

Жыл бұрын

​@@kashyappoza why the hell should someone learn it? He is asking please and you are ordering. People know better culture language than hindi. Like kannada, Tamil, telugu, tulu, malyalam, why hindi?

@kashyappoza

Жыл бұрын

@@lakshmitejas1685 I am not ordering...it is solution from my view....they will not make/translate special video for you. I am least concern about which language is better 😀😀

achchq