Buying or renting your own house, this decision is very difficult for the people living in Metro City. While buying a house on one side, you have to pay thick EMI every month, on the other hand, staying on rent leads to money saving. Recently a Redit user shared the post on this issue, who sparked a debate…
In today's era, this question comes in the mind of every middle class person that it is prudent to buy a house by taking a loan or it is better to save and invest money by staying on rent? Recently, a redit post has waged a strong debate on this question. In the post, the Redit user said that buying flats in big cities can prove to be a financially wrong decision and people often do so under the pressure of society. Along with this, the user also shared financial tips about buying a house or staying on rent.
The Redit user told that the price of a simple 2bhk flat in metro city like Mumbai, Bangalore or Delhi is at least Rs 1.5 crore. In such a situation, even after giving 20% down payment i.e. about 30 lakh rupees, you will have to take a loan of Rs 1.2 crore. According to the current interest rates on the loan, an EMI of about ₹ 80,000 is made every month and this EMI can run up to 20 years or more. The Redit user said that in this long time you pay more money than the real price of the flat only as interest. And until the loan is repaid, you remain the tenant of the bank.
Redit user suggested that you can rent such an expensive flat for about 30000 to 35000 rupees i.e. a savings of 40000 to 50000 rupees can be saved every month. Which you can invest in mutual funds, SIP or stock market, which can give good returns in 10-15 years. The user said that if your job goes away or a financial crisis comes, then you do not come under debt pressure, which can become a big threat to people with EMI.
After this post, thousands of reactions came on Redit. Some people agreed to it. He believed that financial safety is necessary in the current era. He said that it was easy to buy a house two decades ago, but in today's era it has become a big risk. At the same time, many people also opposed this idea and said that the rent of such expensive flats cannot be 35000 rupees in the metro city and buying a house is not just a deal of money but also an emotional security.
In this debate, some users found a middle path and said that if you have to buy a house, then take a property whose EMI does not exceed 40-50% of your salary and if you cannot afford to metro city, then invest for the future with a small flat in a Tier 2 or Tier 3 city. In this way, not only you will have a property, but financial stress will also be reduced.
