Too much of debate on whether you should buy a house or rent a house. Lets look at some facts….

A 24 year old takes up a job at Rs. 3L p.a. soon his salary increases to Rs. 6L and he is only 27 years of age. Let us assume for a while that his salary at the end of his earning life is Rs. 1 crore per annum.

Assuming he retires at 55, it means he got about 31 years of working life. On an average let us assume that he earned about Rs. 15 crores in his life. Now let us assume he pays about Rs. 3.5 crores as Income tax and 50L as other deductions like canteen, bus,..etc. So he has about Rs.11 crores. Assuming he buys 4 cars at an average cost of Rs.14L…that is another 50L gone. Now he has 10.5 crores.

From this he has to pay for his house, maintenance, food, children’s education, car maintenance, vacations, repaying own education loans, medical, parents medical and other expenses…

So how much is left for a house?

let us say he buys a house for Rs. 2 crores. So his total repayment will be about Rs. 4 crores + furnishing..say Rs. 50L over the life time of the house.

Now he is left with Rs. 6 crores for his

a) own education loan repayment with interest

b) marriage – own and presumably 2 children

c) day to day living

d) medical expenses, medical insurance, ..etc.

e) looking after parents

f) vacations including foreign vacations

soch lo…ghar lena hai?