Should I buy a Rs 1.5 Cr flat on loan or keep renting at Rs 40K a month?

Published 28 September 2026

Jagjit from Bhubaneswar
I am 35 and currently renting a nice apartment for Rs 40K a month.

My family is pushing me to buy a house which would cost around Rs 1.5cr.

The EMI would be massive compared to my rent.

Does it make financial sense to buy a house right now or should I continue renting and investing the difference?
Sachin Kabra Sachin Kabra ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn
From a purely mathematical standpoint in India, renting almost always wins over buying a house on loan. Rental yields in major cities hover around 3% to 4% of the property value. Meanwhile, home loan interest rates sit much higher at around 7% to 9%.

The math heavily favors paying cheap rent and investing the huge EMI difference into wealth-creating like equity. However, buying a house should never be viewed as a pure financial investment. It is fundamentally an emotional purchase and a consumption asset.

You buy a house for the freedom to knock down a wall, upgrade a kitchen or hang a picture without asking a landlord's permission. If you decide to buy a home, do it because you can comfortably afford the exact house you want. Treat it as something that brings you happiness and stability, much like buying a luxury car or a high-end watch.

It should not be factored into your liquid net worth calculations for retirement. If the EMI strains your monthly cash flow and stops your SIPs, it is better to keep renting.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.
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