The mindset around homeownership is changing in India. Young people are unsure whether to buy or rent. High property prices, loans, and lifestyle changes make this decision tough.
Buying a house was once considered a great achievement among Indians. Buying a house was also a symbol of pride. Parents encouraged their children to buy a house soon. They thought it was okay to take out a big loan. But now this mindset is changing, especially among the younger generation.
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Rental house or own house?
Currently, there is a debate among many young couples about whether to buy a house or live in a rented house. The main reason for this is that in all the major cities of India, if you want to buy a two-bedroom apartment in a well-equipped area, you have to pay at least 1 crore.
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20 years loan
If you want a house and take out a home loan from any bank, you will have to go to work for the next 20 years just to pay off this loan. In such a situation, there is a debate whether it is better to buy your own house or just stay in a rented house.
But recent survey results say that no young person earning a good salary makes a hasty decision to buy a house. Market experts say that high house prices, financial problems, career change aspirations, educational loans, and high interest rates have all made buying a house difficult, but the dream of buying a house has not completely disappeared.
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Decision making is essential
Those who want to buy their own house should first decide whether they are going to settle in that town or whether they are going to continue living in this town for the next 10 years.
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Rental house - these are the benefits
Living in a rental house offers many benefits such as low investment, no maintenance burden, and easy job change opportunities. It gives better financial freedom and immediate return possibilities. But experts say that only buying a house can provide a stable asset and growth in valuation.
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Investing is essential
If it is a rental house, as our standard of living increases, we can move to a house that suits it. We can rent a house near our work or near our children's school. But no property will be created in our name. But there is a possibility of saving a substantial amount by systematically planning that money and investing it in other investment instruments and using it to buy a house.
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Own house is heaven
Buying a home provides emotional security, tax benefits, and savings when paying off a loan. Real estate experts say that this will benefit influence and asset valuation in the long run.
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Easily available home loans
The hybrid work system increased after the Corona spread. People choose well-equipped urban areas. This increases the attraction towards integrated townships. Alternatively, as interest rates rose, EMIs for home loans increased, making rental homes seem cheaper. But with RBI cutting Repo Rate from 6.25% to 6.0% in 2025, home loans have become easier again.
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This is a new calculation
Some say that with the increase in rent in metro cities, the rent paid for a house and the EMI paid for a new house are almost close, making buying a house a financially smart solution.
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Own house investment - which age is suitable?
If you have a plan to invest money and buy a house, those who are 30 years old can do it. This will not give the best results for those over 40. Since it takes years for the investment to grow, that should also be taken into account.
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A 28 year old earning Rs 1 lakh — what to do?
It is important to first set up an emergency fund, insurance, and retirement savings. Only after that can investment plans be started.
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Mistakes buyers make
When buying a house, they avoid tax, registration fee, maintenance costs. Don't say that you didn't pay attention to the credit score and took a high EMI and there is no room for other expenses. Making decisions without researching the market will not be right, proper planning and mature decisions are important here
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Rental income
Primarily, your job should be stable, you should have savings. If the EMI is within 30-40% of your monthly income, you are ready. If you invest in a house quickly, you will get higher appreciation and rental income.
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What will the future be like?
In the next 5 years, the rental market will be more organized. Co-living, tech-enabled services, shared amenities will attract tenants. But the rent is going to increase again. Rental rates in cities will increase by 7%-10% per year. This will be faster than inflation. When the rental house cost reaches the EMI level, the decision to buy a house becomes a wise decision.
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A peaceful investment
Buying a house should be decided based on your life situation, future goals, and finances. Rent may be convenient now. But owning a home is long-term valuable and peaceful.
