'Don't buy a house when you can afford EMI, buy when you can..." CA decodes maths behind buying vs renting a house
A CA's viral post questions the rush to buy homes in India. Abhishek Walia suggests affordability is mistaken for readiness. Renting offers flexibility, while home loans bring long-term financial obligations. He urges reflection on income stabilit...
By ET Online | Updated:
Buying a home is often seen as the ultimate sign of stability in India, but a CA’s viral post on LinkedIn is making many rethink that belief. CA Abhishek Walia, founder of Zactor, shared a thought-provoking perspective that challenges the idea of rushing into home ownership just because you can afford the EMI.
In his post, Walia argued that people often mistake affordability for readiness. He explained that paying rent may seem like “wasted money,” but it actually offers something far more valuable — flexibility. In contrast, taking on a home loan ties you down with long-term financial obligations that can restrict your lifestyle and risk-taking ability.
He urged everyone to reflect before signing a home loan, asking themselves tough questions: can they survive months without income and still pay the EMI, or would it halt their investments for years? According to him, the real risk isn’t in buying the house itself, but in how the loan reshapes your financial freedom.
In his post, Walia argued that people often mistake affordability for readiness. He explained that paying rent may seem like “wasted money,” but it actually offers something far more valuable — flexibility. In contrast, taking on a home loan ties you down with long-term financial obligations that can restrict your lifestyle and risk-taking ability.
He urged everyone to reflect before signing a home loan, asking themselves tough questions: can they survive months without income and still pay the EMI, or would it halt their investments for years? According to him, the real risk isn’t in buying the house itself, but in how the loan reshapes your financial freedom.
Walia concluded by reminding people that a home loan is not just a financial decision — it’s a lifestyle commitment. True freedom, he said, doesn’t come from owning a home, but from owning the decisions that shape your life.
On the other hand, renting a similar house for Rs 30,000 and investing the Rs 40,000 EMI difference at a 12% return could grow into Rs 3.6 crore over the same period — provided one is disciplined enough to invest consistently.
Walia summed it up by saying that buying brings emotional security, while renting offers liquidity and freedom. The real choice, he said, lies in deciding whether you value ownership or opportunity — stability or flexibility.
Here is the maths-
In an earlier post, Abhishek Walia had broken down the numbers behind the rent-versus-buy debate, arguing that it’s not really about real estate — it’s about cash flow. He explained that buying a home worth Rs 1 crore with a Rs 20 lakh down payment and a Rs 80 lakh loan means paying around Rs 70,000 every month for 20 years, eventually totalling Rs 1.66 crore.On the other hand, renting a similar house for Rs 30,000 and investing the Rs 40,000 EMI difference at a 12% return could grow into Rs 3.6 crore over the same period — provided one is disciplined enough to invest consistently.
Walia summed it up by saying that buying brings emotional security, while renting offers liquidity and freedom. The real choice, he said, lies in deciding whether you value ownership or opportunity — stability or flexibility.
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