The way home loan rates are coming down and rent for house closing down to the monthly EMI in some of the pockets of metro suburbs, it has become a million dollar question as to whether it is better to buy a house and pay EMI or to remain a renter and keep your savings chested? It has been found that people pay hefty money on buying a house without thinking what would be the rent they can get if they fail to live in that house for long. To find answer to this question, we did an exercise through buy versus rent calculator, which any body an find through a google search. 

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In this exercise, we priced the property at Rs 40 lakh and its delivery was fixed in next three years. We also fixed the rent of that house at Rs 20,000 per month. While doing this calculation we also assumed that the property price would appreciate at 10 per cent per annum and your monthly gross salary is Rs 50,000. Using these data on the buy versus rent calculator, it was found that if a person buys a house and live for shorter period say four or less than four years, then his or her decision to buy a house is wrong. In case of living in the house bought with five or more years, the decision to buy would be fruitful.

As per the buy versus rent calculator with numbers mentioned above, your buying cost would be Rs 83.2 lakh while renting cost would appreciate at Rs 71.8 lakh.

Speaking on the matter Kartik Jhaveri, Diretor — Wealth Management at Transcent Consultants told, "The basic thing that one need to ask himself is do they really need a house because if you are staying in one city for long, you would like to have your own house because it gives you some sort of reverence and satisfaction that you own a house and now you area stable." 

However, Jhaveri of Transcend Consultants added, "One having a movable job would not prefer for his or her own house as it makes no sense of buying a house and renting it out as he or she can't afford to live in that house." As revealed by the buy versus rent calculator Jhaveri said that houses are bought with keeping in mind that the buyer would stay in that house for long or at least a decade or around a decade time. He said houses are also bought keeping retirement plan in mind.  

Commenting on the matter Rakesh Yadav, CMD, Antriksh India Group told Zee Business online, "Renting is advisable for those who are not supposed to stay in one home or locality for longer period of time means six-seven years or more." Yadav went on to add that before going to buy your dream home, you should first ask yourself a question, how long you would be able to stay in that home and while finding answers to this question one need to keep his or her office, its distance from that home. After one's office and house jingle, one need to apply the same on the schools of their kid(s). Not keeping these variables in your mind before deciding how long you would be able to stay in that home may make your decision to buy a house or going for rentals may wrong.