Rs 80,000 EMI or Rs 35,000 rent? One Reddit post has everyone rethinking their life and financial choices

Time of India

3 days ago

Internet debates
What does financial analyst say?
It's the kind of question that can split a dinner table right down the middle — is it smarter to buy a house with a hefty loan or rent and invest the difference? A viral Reddit post has sparked a heated discussion, with people weighing in with personal stories, hard numbers, and strong opinions on what makes the most financial sense in today's market.The debate kicked off when a Reddit user urged people not to take a loan for buying a flat, suggesting they rent instead. According to him, any semi-decent flat in a tier 1 city costs at least Rs 1.5 crore. Even with a 20% down payment of Rs 30 lakh, the loan amount would still be Rs 1.2 crore. At current home loan rates of about 7.5% per annum, he calculated an EMI of Rs 80,000 per month — stretching all the way to retirement. He argued that the total interest paid would equal the value of the flat, meaning you're effectively a tenant to the bank until the loan is cleared. 'You're not the owner. You'll be kicked out if you lose your job and miss your EMI payments,' he wrote, adding that flats depreciate over time and aren't the great inheritance many believe them to be. In contrast, the same property could be rented for Rs 30,000–Rs 35,000 a month, leaving room to save and invest the difference.The post set off a flurry of responses. One user agreed that owning a flat in the current unstable environment sounded risky, noting that two decades ago it would have been a no-brainer. Another pushed back, saying a Rs 1.5 crore flat fetching only Rs 35,000 in rent was unrealistic in most job-rich cities, and that home ownership is about more than numbers. They argued that many finance influencers advising against buying come from secure family backgrounds — for someone with little to no inheritance, owning a home could be a top priority.Others highlighted the practical benefits of ownership. One pointed out that as long as you pay your EMIs, a bank can't evict you — unlike a landlord, who can ask you to vacate with notice, even on a whim. They noted that homeowners can legally rent out their property, make structural changes, and participate in housing society decisions — rights that most tenants lack. They also mentioned that EMIs tend to be influenced by repo rates, while rents can be arbitrary.Still, some users maintained that buying only makes sense if the flat is well within your means. 'Never buy a flat which takes almost your full or even 75% of your take-home salary,' one warned. Their advice: buy a cheaper flat in a lower locality, or even in a tier 3 city, just to ensure you always have a home to fall back on.Previously, Hardik Joshi, a Hyderabad-based financial analyst, had shared in a LinkedIn post that buying suits for those with stable jobs and deep roots, while renting benefits those seeking mobility, financial growth, and global. He weighed in on the rent vs buy debate, noting that purchasing a home in metros like Mumbai, Delhi NCR, Bengaluru, or Hyderabad demands a heavy financial commitment. A 2BHK in a prime area can cost Rs 1.5 crore, with a Rs 30 lakh down payment and a Rs 1.2 crore loan at 9% interest, leading to repayments exceeding Rs 2.5 crore over 20 years. Beyond the cost, buying limits mobility, making it harder to pursue better opportunities elsewhere. Homeowners also bear ongoing expenses like maintenance, property taxes, and face market risks that could affect resale value, making ownership as much a lifestyle choice as a financial one.