Rent vs buy, over 5 years
A simple 5-year comparison. Inputs are conservative. The answer depends on appreciation and your alternative-use of the down payment.
If you buy, 5 yr
₹1,14,50,534
Equity after 5 years
EMI paid: ₹62,93,972
If you rent, 5 yr
₹42,07,655
Alt. investment value
Rent paid: ₹31,05,399
How this works
We compare two outcomes after 5 years: (a) you rent the same home and invest the down payment in an alternative (say, fixed-deposit returns); (b) you buy the home with a 20% down payment + 80% loan, pay EMI every month, and the home appreciates at the assumed rate.
This is a back-of-envelope view. It ignores stamp duty, brokerage, maintenance, vacancy risk, and tax. We use it as a quick sanity check, not as the final word.