Financial Tips: Is a rented house really better than a home loan? These financial tips will open up your mind..

Buying your own house or living on rent, this decision is very difficult, especially for people living in metro cities. On one hand, buying a house requires paying a hefty EMI every month; on the other hand, living on rent saves money. Recently, a Reddit user shared a post on this issue, which started a debate…

In today's era, this question comes to the mind of every middle-class person, whether it is wise to buy a house by taking a loan or is it better to save and invest money by living on rent? Recently, a Reddit post started a fierce debate on this question. In the post, the Reddit user said that buying a flat in big cities can prove to be a financially wrong decision, and people often do this under social pressure. Along with this, the user also shared financial tips about buying a house or living on rent.

Heavy EMI or low rent - what is the right decision?
The Reddit user said that in metro cities like Mumbai, Bangalore, or Delhi, the price of a simple 2BHK flat is at least Rs 1.5 crore. In such a situation, even after paying a 20% down payment, i.e., about Rs 30 lakh, you will have to take a loan of Rs 1.2 crore. According to the current interest rates on the loan, the EMI is about ₹ 80,000 every month, and this EMI can last for 20 years or more. The Reddit user said that over this long time, you pay more money than the actual price of the flat, with interest only. And until the loan is repaid, you remain a tenant of the bank.

Is it right to invest money in renting a flat?
The Reddit user suggested that you can rent such an expensive flat for about Rs 30000 to 35000, which means you can save Rs 40000 to 50000 every month. You can invest in mutual funds, SIP, or stock market, which can give good returns in 10-15 years. The user said that if you lose your job or face any financial crisis, you do not come under the pressure of debt, which can become a big threat for people with EMI.

Flood of reactions on social media
After this post, thousands of reactions came on Reddit. Some people completely agreed with this. They believed that financial security is important in the current times. They said that buying a house was easy two decades ago, but in today's time it has become a big risk. At the same time, many people also opposed this idea and said that the rent of such an expensive flat cannot be Rs 35000 in a 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 way and said that if you have to buy a house, then buy a property whose EMI is not more than 40-50% of your salary and if you cannot afford it in a metro city, then buy a small flat in a tier 2 or tier 3 city and invest for the future. This way, not only will you have a property, but your financial stress will also be reduced.

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