We are in 2025!
But the debate on RENT vs BUY is still tap dancing its way into every financial conversations like an overzealous uncle who just discovered cryptocurrency.
Let’s have small talk about it.
First, A Reality Check
- Interest rates? They are not as polite as they used to be.
- Housing prices? Still doing their cardio.
- Salaries? Trying to keep up but wheezing a little.
In short,
Buying a house today feels like committing to a 20-year relationship with a bank minus the romance plus lot of paperwork.
On the other hand, Renting feels like dating. You're free, flexible, and your money’s going somewhere, but not into the bricks that you own.
Wait, It's not as that simple!
Renting is Not-So-Irresponsible Choice
Let’s kill the myth: Renting is not setting your salary on fire. It’s strategic. Especially if you're mobile, unpredictable, or allergic to commitment.
Renting means:
- No property tax.
- No maintenance surprises. (have you ever tried budgeting for a leaking ceiling? Spoiler: you can’t.)
- No down payment can draining your bank account like a slow leak in a bathtub.
And in 2025, with urban job markets still shifting and remote work still hovering like an undecided cloud, flexibility is currency.
Need to move cities because your startup pivoted into an NFT-dating app that only works in Goa?
Cool. You’re not locked into a 30-year mortgage.
But let’s not romanticize it either.
Renting also means:
- Your landlord could suddenly decide your bathroom is now their storage unit.
- Rent hikes that feel like blackmail with extra steps.
- Zero equity. Your payments build someone else’s wealth, but not yours.
So, renting is freedom with strings. Invisible ones. Like fishing lines for your wallet.
Romantic Fantasy or Strategic Move?
Now let’s talk about the sacred cow of Indian middle-class dreams i.e., buying a house. The greatest milestone that your parents won’t stop hinting at, between “marriage” and “children.”
What does owning a house gives you?
- Stability (unless your builder vanishes :P).
- The joy of saying “my house”.
- A physical asset that may appreciate in value.
Also, you can paint your walls with Neon Green if you want. (The paint won't look good but it's your choice.)
But buying a home in 2025 is very expensive.
Here’s what you’re really signing up for:
- A down payment that's practically a kidney sale away.
- EMIs that don’t care if you lost your job or your crypto portfolio tanked.
- Hidden costs. Registration, interiors, maintenance, society charges... it’s like peeling an onion.
You cry at every layer!
But What About “Building Wealth”?
Yes, home ownership may be a long-term wealth builder.
Can be. But not always.
If you’re in a growing area, if the infrastructure plans pan out, if the builder isn’t in jail by next monsoon, your home value might appreciate. Might!
And you should remember that homes aren’t liquid. I mean you can’t sell a square foot of your home to cover a medical bill. You can’t withdraw a balcony to pay your children school fees. Yes, your home is an asset, but a very illiquid one. It's like owning gold jewelry that you might sell in a crisis, but only after ten arguments and a minor emotional breakdown. Just compare that the same money if invested in mutual funds or stocks while renting instead of buying a house which can be a valid approach. So that you can potentially build a more diversified and less headache ridden portfolio. Ofcourse, there's a risk associated with this approach too, like the market might nosedive or inflation could punch in your teeth or the rent you saved may end up funding your online shopping addiction.
So, I say it’s all about priorities.
The Math
Let’s do some rough calculations, just practical numbers without equations and Greek letters.
Say you’re looking for a 2BHK in a tier-1 city. what is the Price tag?
around ₹1.2 crore.
Down payment?
may be ₹20-25 lakh upfront.
EMI?
Roughly ₹80,000–₹90,000 per month, for 20 years assuming a 9% interest rate. Over the loan term, you’ll pay nearly double the principal in total.
Yes, double.
Now compare that with renting the same apartment.
Rent!?
Yes, the rent may be around ₹35,000–₹40,000 per month. Unnecessary upfront kidney sale is not required.
That difference in monthly cash outflow ₹40,000 to ₹50,000 can be invested.
Now ask your self,
Do you want to build equity in a property slowly, with the promise of future ownership?
Or
Would you rather keep things fluid, invest the difference, and maybe retire early?
Emotional Economics:
There’s also the Emotional Economics that no calculator can show you such stuff.
We the people need a psychological security of “Apna Ghar.” It’s not about numbers but about knowing no one can kick you out of the house with a 30-day notice. Of course, some people get itchy thinking about being tied to one location for decades, they like to change zip codes the way we change pillow covers. Neither of the mindset is wrong but don't buy a house just because "it's what grownups do." otherwise you end up in a house as poor who with a sofa you can't afford to sit because of your AC bill is overdue.
So... What Makes Sense in 2025?
Honestly.... It depends on you.
- Do you crave stability?
- Will you stay there for at least a decade?
- Did you have the upfront money without gutting your emergency fund?
Then, buying might be your thing.
But if you value flexibility or if you want to supercharge your investments before locking into a property then renting is smart.
Ignore the noises of the uncle at weddings, the banker who calls thrice a day or the YouTube guy who selling "Home Loan Hacks" with suspiciously white teeth.
Instead, look at your finances, your values, your risk appetite and your stage of life.
And if you're still unsure, then here’s a radical idea. WAIT.
There’s no shame in not deciding yet. Neither your dreams or the market’s not going anywhere.
At the end of the day, most of us aren’t just buying or renting a house.
We’re buying comfort, control or maybe even validation.
So next time if you catch yourself drooling over a builder brochure or scrolling through property portals like it’s Tinder,
Ask Yourself:
Am I doing this because it’s right for me or because it feels expected?
That question alone might save you crores and possibly a whole lot of regret.
Thank you for reading this article till here, hope its useful.