india rent vs buy

7/27/2019 India Rent vs Buy

1/22

Calculation Year 2006

House Value in Calculation Year 2,000,000.00INR

Downpayment Amount INR 2,000,000.00

EMI INR 0.00

Maintenance Per Month INR 0.00

Loan Duration (Years) 15House appreciation per year 9.00%

Rent for the same House/Flat INR 9,000.00

Rent appreciation per year 5.00%

Return on your investments 10.00%

Input: Buying House/Flat Input

Input: Rent

Input: Return of Investment you can generate


2/22

5 1 2 3 4 5 6

Y1 (108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68) (137,838.41)

Y2 (108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68)

Y3 (108,000.00) (113,400.00) (119,070.00) (125,023.50)

Y4 (108,000.00) (113,400.00) (119,070.00)

Y5 (108,000.00) (113,400.00)

Y6 (108,000.00)

Y7

Y8

Y9

Y10

Y11

Y12

Y13

Y14

Y15Y16

Y17

Y18

Y19

Y20

Y21

Y22

Y23

Y24

Y25

Y26

Total (108,000.00) (221,400.00) (340,470.00) (465,493.50) (596,768.18) (734,606.58)

If you haven't bought house you will loose money through rent. This Calculation shows how much lo

loss from year 1 to year 10


3/22

7 8 9 10 11 12 13

(144,730.33) (151,966.85) (159,565.19) (167,543.45) (175,920.62) (184,716.65) (193,952.48)

(137,838.41) (144,730.33) (151,966.85) (159,565.19) (167,543.45) (175,920.62) (184,716.65)

(131,274.68) (137,838.41) (144,730.33) (151,966.85) (159,565.19) (167,543.45) (175,920.62)

(125,023.50) (131,274.68) (137,838.41) (144,730.33) (151,966.85) (159,565.19) (167,543.45)

(119,070.00) (125,023.50) (131,274.68) (137,838.41) (144,730.33) (151,966.85) (159,565.19)

(113,400.00) (119,070.00) (125,023.50) (131,274.68) (137,838.41) (144,730.33) (151,966.85)

(108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68) (137,838.41) (144,730.33)

(108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68) (137,838.41)

(108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68)

(108,000.00) (113,400.00) (119,070.00) (125,023.50)

(108,000.00) (113,400.00) (119,070.00)

(108,000.00) (113,400.00)

(108,000.00)

(879,336.91) (1,031,303.76) (1,190,868.95) (1,358,412.39) (1,534,333.01) (1,719,049.66) (1,913,002.15)

s accumulated in years. E.g. Total for 10 Year represents total


4/22

14 15 16 17 18 19 20

(203,650.11) (213,832.61) (224,524.24) (235,750.46) (247,537.98) (259,914.88) (272,910.62)

(193,952.48) (203,650.11) (213,832.61) (224,524.24) (235,750.46) (247,537.98) (259,914.88)

(184,716.65) (193,952.48) (203,650.11) (213,832.61) (224,524.24) (235,750.46) (247,537.98)

(175,920.62) (184,716.65) (193,952.48) (203,650.11) (213,832.61) (224,524.24) (235,750.46)

(167,543.45) (175,920.62) (184,716.65) (193,952.48) (203,650.11) (213,832.61) (224,524.24)

(159,565.19) (167,543.45) (175,920.62) (184,716.65) (193,952.48) (203,650.11) (213,832.61)

(151,966.85) (159,565.19) (167,543.45) (175,920.62) (184,716.65) (193,952.48) (203,650.11)

(144,730.33) (151,966.85) (159,565.19) (167,543.45) (175,920.62) (184,716.65) (193,952.48)

(137,838.41) (144,730.33) (151,966.85) (159,565.19) (167,543.45) (175,920.62) (184,716.65)

(131,274.68) (137,838.41) (144,730.33) (151,966.85) (159,565.19) (167,543.45) (175,920.62)

(125,023.50) (131,274.68) (137,838.41) (144,730.33) (151,966.85) (159,565.19) (167,543.45)

(119,070.00) (125,023.50) (131,274.68) (137,838.41) (144,730.33) (151,966.85) (159,565.19)

(113,400.00) (119,070.00) (125,023.50) (131,274.68) (137,838.41) (144,730.33) (151,966.85)

(108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68) (137,838.41) (144,730.33)

(108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68) (137,838.41)(108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68)

(108,000.00) (113,400.00) (119,070.00) (125,023.50)

(108,000.00) (113,400.00) (119,070.00)

(108,000.00) (113,400.00)

(108,000.00)

(2,116,652.25) (2,330,484.87) (2,555,009.11) (2,790,759.57) (3,038,297.54) (3,298,212.42) (3,571,123.04)


5/22

21 22 23 24 25 26

(286,556.15) (300,883.96) (315,928.16) (331,724.57) (348,310.79) (365,726.33)

(272,910.62) (286,556.15) (300,883.96) (315,928.16) (331,724.57) (348,310.79)

(259,914.88) (272,910.62) (286,556.15) (300,883.96) (315,928.16) (331,724.57)

(247,537.98) (259,914.88) (272,910.62) (286,556.15) (300,883.96) (315,928.16)

(235,750.46) (247,537.98) (259,914.88) (272,910.62) (286,556.15) (300,883.96)

(224,524.24) (235,750.46) (247,537.98) (259,914.88) (272,910.62) (286,556.15)

(213,832.61) (224,524.24) (235,750.46) (247,537.98) (259,914.88) (272,910.62)

(203,650.11) (213,832.61) (224,524.24) (235,750.46) (247,537.98) (259,914.88)

(193,952.48) (203,650.11) (213,832.61) (224,524.24) (235,750.46) (247,537.98)

(184,716.65) (193,952.48) (203,650.11) (213,832.61) (224,524.24) (235,750.46)

(175,920.62) (184,716.65) (193,952.48) (203,650.11) (213,832.61) (224,524.24)

(167,543.45) (175,920.62) (184,716.65) (193,952.48) (203,650.11) (213,832.61)

(159,565.19) (167,543.45) (175,920.62) (184,716.65) (193,952.48) (203,650.11)

(151,966.85) (159,565.19) (167,543.45) (175,920.62) (184,716.65) (193,952.48)

(144,730.33) (151,966.85) (159,565.19) (167,543.45) (175,920.62) (184,716.65)(137,838.41) (144,730.33) (151,966.85) (159,565.19) (167,543.45) (175,920.62)

(131,274.68) (137,838.41) (144,730.33) (151,966.85) (159,565.19) (167,543.45)

(125,023.50) (131,274.68) (137,838.41) (144,730.33) (151,966.85) (159,565.19)

(119,070.00) (125,023.50) (131,274.68) (137,838.41) (144,730.33) (151,966.85)

(113,400.00) (119,070.00) (125,023.50) (131,274.68) (137,838.41) (144,730.33)

(108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68) (137,838.41)

(108,000.00) (113,400.00) (119,070.00) (125,023.50) (131,274.68)

(108,000.00) (113,400.00) (119,070.00) (125,023.50)

(108,000.00) (113,400.00) (119,070.00)

(108,000.00) (113,400.00)

(108,000.00)

(3,857,679.20) (4,158,563.16) (4,474,491.31) (4,806,215.88) (5,154,526.67) (5,520,253.01)


6/22

10.00 1 2 3 4 5 6

Y1 2,000,000.00 2,200,000.00 2,420,000.00 2,662,000.00 2,928,200.00 3,221,020.00

Total 2,000,000.00 2,200,000.00 2,420,000.00 2,662,000.00 2,928,200.00 3,221,020.00

If you haven't bought house you will have you downpayment amount and you can inv


7/22

7 8 9 10 11 12

3,543,122.00 3,897,434.20 4,287,177.62 4,715,895.38 5,187,484.92 5,706,233.41

3,543,122.00 3,897,434.20 4,287,177.62 4,715,895.38 5,187,484.92 5,706,233.41

st it and increase this money over the years


8/22

13 14 15 16 17 18

6,276,856.75 6,904,542.43 7,594,996.67 8,354,496.34 9,189,945.97 10,108,940.57

6,276,856.75 6,904,542.43 7,594,996.67 8,354,496.34 9,189,945.97 10,108,940.57


9/22

19 20 21 22 23 24

11,119,834.63 12,231,818.09 13,454,999.90 14,800,499.89 16,280,549.88 17,908,604.87

11,119,834.63 12,231,818.09 13,454,999.90 14,800,499.89 16,280,549.88 17,908,604.87


10/22

25 26

19,699,465.35 21,669,411.89

19,699,465.35 21,669,411.89


11/22

10.00 1 2 3 4 5 6

Y1 (108,000.00) (118,800.00) (130,680.00) (143,748.00) (158,122.80) (173,935.08)

Y2 (108,000.00) (118,800.00) (130,680.00) (143,748.00) (158,122.80)

Y3 (108,000.00) (118,800.00) (130,680.00) (143,748.00)Y4 (108,000.00) (118,800.00) (130,680.00)

Y5 (108,000.00) (118,800.00)

Y6 (108,000.00)

Y7

Y8

Y9

Y10

Y11

Y12

Y13

Y14

Y15

Y16

Y17

Y18

Y19

Y20

Y21

Y22

Y23

Y24

Y25

Y26

Total (108,000.00) (226,800.00) (357,480.00) (501,228.00) (659,350.80) (833,285.88)

If you haven't bought house you will save the (EMI + Maintenace -Rent) money over t


12/22

7 8 9 10 11 12

(191,328.59) (210,461.45) (231,507.59) (254,658.35) (280,124.19) (308,136.60)

(173,935.08) (191,328.59) (210,461.45) (231,507.59) (254,658.35) (280,124.19)

(158,122.80) (173,935.08) (191,328.59) (210,461.45) (231,507.59) (254,658.35)(143,748.00) (158,122.80) (173,935.08) (191,328.59) (210,461.45) (231,507.59)

(130,680.00) (143,748.00) (158,122.80) (173,935.08) (191,328.59) (210,461.45)

(118,800.00) (130,680.00) (143,748.00) (158,122.80) (173,935.08) (191,328.59)

(108,000.00) (118,800.00) (130,680.00) (143,748.00) (158,122.80) (173,935.08)

(108,000.00) (118,800.00) (130,680.00) (143,748.00) (158,122.80)

(108,000.00) (118,800.00) (130,680.00) (143,748.00)

(108,000.00) (118,800.00) (130,680.00)

(108,000.00) (118,800.00)

(108,000.00)

(1,024,614.47) (1,235,075.91) (1,466,583.51) (1,721,241.86) (2,001,366.04) (2,309,502.65)

he years again that will built as asset for you.


13/22

13 14 15 16 17 18

(338,950.26) (372,845.29) (410,129.82) (451,142.80) (496,257.08) (545,882.79)

(308,136.60) (338,950.26) (372,845.29) (410,129.82) (451,142.80) (496,257.08)

(280,124.19) (308,136.60) (338,950.26) (372,845.29) (410,129.82) (451,142.80)(254,658.35) (280,124.19) (308,136.60) (338,950.26) (372,845.29) (410,129.82)

(231,507.59) (254,658.35) (280,124.19) (308,136.60) (338,950.26) (372,845.29)

(210,461.45) (231,507.59) (254,658.35) (280,124.19) (308,136.60) (338,950.26)

(191,328.59) (210,461.45) (231,507.59) (254,658.35) (280,124.19) (308,136.60)

(173,935.08) (191,328.59) (210,461.45) (231,507.59) (254,658.35) (280,124.19)

(158,122.80) (173,935.08) (191,328.59) (210,461.45) (231,507.59) (254,658.35)

(143,748.00) (158,122.80) (173,935.08) (191,328.59) (210,461.45) (231,507.59)

(130,680.00) (143,748.00) (158,122.80) (173,935.08) (191,328.59) (210,461.45)

(118,800.00) (130,680.00) (143,748.00) (158,122.80) (173,935.08) (191,328.59)

(108,000.00) (118,800.00) (130,680.00) (143,748.00) (158,122.80) (173,935.08)

(108,000.00) (118,800.00) (130,680.00) (143,748.00) (158,122.80)

(108,000.00) (118,800.00) (130,680.00) (143,748.00)

(108,000.00) (118,800.00) (130,680.00)

(108,000.00) (118,800.00)

(108,000.00)

(2,648,452.91) (3,021,298.20) (3,431,428.02) (3,882,570.83) (4,378,827.91) (4,924,710.70)


14/22

19 20 21 22 23 24

(600,471.07) (660,518.18) (726,569.99) (799,226.99) (879,149.69) (967,064.66)

(545,882.79) (600,471.07) (660,518.18) (726,569.99) (799,226.99) (879,149.69)

(496,257.08) (545,882.79) (600,471.07) (660,518.18) (726,569.99) (799,226.99)(451,142.80) (496,257.08) (545,882.79) (600,471.07) (660,518.18) (726,569.99)

(410,129.82) (451,142.80) (496,257.08) (545,882.79) (600,471.07) (660,518.18)

(372,845.29) (410,129.82) (451,142.80) (496,257.08) (545,882.79) (600,471.07)

(338,950.26) (372,845.29) (410,129.82) (451,142.80) (496,257.08) (545,882.79)

(308,136.60) (338,950.26) (372,845.29) (410,129.82) (451,142.80) (496,257.08)

(280,124.19) (308,136.60) (338,950.26) (372,845.29) (410,129.82) (451,142.80)

(254,658.35) (280,124.19) (308,136.60) (338,950.26) (372,845.29) (410,129.82)

(231,507.59) (254,658.35) (280,124.19) (308,136.60) (338,950.26) (372,845.29)

(210,461.45) (231,507.59) (254,658.35) (280,124.19) (308,136.60) (338,950.26)

(191,328.59) (210,461.45) (231,507.59) (254,658.35) (280,124.19) (308,136.60)

(173,935.08) (191,328.59) (210,461.45) (231,507.59) (254,658.35) (280,124.19)

(158,122.80) (173,935.08) (191,328.59) (210,461.45) (231,507.59) (254,658.35)

(143,748.00) (158,122.80) (173,935.08) (191,328.59) (210,461.45) (231,507.59)

(130,680.00) (143,748.00) (158,122.80) (173,935.08) (191,328.59) (210,461.45)

(118,800.00) (130,680.00) (143,748.00) (158,122.80) (173,935.08) (191,328.59)

(108,000.00) (118,800.00) (130,680.00) (143,748.00) (158,122.80) (173,935.08)

(108,000.00) (118,800.00) (130,680.00) (143,748.00) (158,122.80)

(108,000.00) (118,800.00) (130,680.00) (143,748.00)

(108,000.00) (118,800.00) (130,680.00)

(108,000.00) (118,800.00)

(108,000.00)

(5,525,181.77) (6,185,699.95) (6,912,269.94) (7,711,496.93) (8,590,646.63) (9,557,711.29)


15/22

25 26

(1,063,771.13) (1,170,148.24)

(967,064.66) (1,063,771.13)

(879,149.69) (967,064.66)(799,226.99) (879,149.69)

(726,569.99) (799,226.99)

(660,518.18) (726,569.99)

(600,471.07) (660,518.18)

(545,882.79) (600,471.07)

(496,257.08) (545,882.79)

(451,142.80) (496,257.08)

(410,129.82) (451,142.80)

(372,845.29) (410,129.82)

(338,950.26) (372,845.29)

(308,136.60) (338,950.26)

(280,124.19) (308,136.60)

(254,658.35) (280,124.19)

(231,507.59) (254,658.35)

(210,461.45) (231,507.59)

(191,328.59) (210,461.45)

(173,935.08) (191,328.59)

(158,122.80) (173,935.08)

(143,748.00) (158,122.80)

(130,680.00) (143,748.00)

(118,800.00) (130,680.00)

(108,000.00) (118,800.00)

(108,000.00)

(10,621,482.42) (11,791,630.66)


16/22

9.00 1 2 3 4 5 6

Y1 2,000,000.00 2,180,000.00 2,376,200.00 2,590,058.00 2,823,163.22 3,077,247.91

Total 2,000,000.00 2,180,000.00 2,376,200.00 2,590,058.00 2,823,163.22 3,077,247.91

House value over the years


17/22

7 8 9 10 11 12

3,354,200.22 3,656,078.24 3,985,125.28 4,343,786.56 4,734,727.35 5,160,852.81

3,354,200.22 3,656,078.24 3,985,125.28 4,343,786.56 4,734,727.35 5,160,852.81


18/22

13 14 15 16 17 18

5,625,329.56 6,131,609.22 6,683,454.05 7,284,964.92 7,940,611.76 8,655,266.82

5,625,329.56 6,131,609.22 6,683,454.05 7,284,964.92 7,940,611.76 8,655,266.82


19/22

19 20 21 22 23 24

9,434,240.83 10,283,322.51 11,208,821.54 12,217,615.47 13,317,200.87 14,515,748.94

9,434,240.83 10,283,322.51 11,208,821.54 12,217,615.47 13,317,200.87 14,515,748.94


20/22

25 26

15,822,166.35 17,246,161.32

15,822,166.35 17,246,161.32


21/22

Year Total Loss from Rent Total Asset Developed from

Downpayment

Total Asset Developed

from EMI

2006 (108,000.00) 2,000,000.00 (108,000.00)

2007 (221,400.00) 2,200,000.00 (226,800.00)

2008 (340,470.00) 2,420,000.00 (357,480.00)

2009 (465,493.50) 2,662,000.00 (501,228.00)2010 (596,768.18) 2,928,200.00 (659,350.80)

2011 (734,606.58) 3,221,020.00 (833,285.88)

2012 (879,336.91) 3,543,122.00 (1,024,614.47)

2013 (1,031,303.76) 3,897,434.20 (1,235,075.91)

2014 (1,190,868.95) 4,287,177.62 (1,466,583.51)

2015 (1,358,412.39) 4,715,895.38 (1,721,241.86)

2016 (1,534,333.01) 5,187,484.92 (2,001,366.04)

2017 (1,719,049.66) 5,706,233.41 (2,309,502.65)

2018 (1,913,002.15) 6,276,856.75 (2,648,452.91)

2019 (2,116,652.25) 6,904,542.43 (3,021,298.20)

2020 (2,330,484.87) 7,594,996.67 (3,431,428.02)

2021 (2,555,009.11) 8,354,496.34 (3,882,570.83)2022 (2,790,759.57) 9,189,945.97 (4,378,827.91)

2023 (3,038,297.54) 10,108,940.57 (4,924,710.70)

2024 (3,298,212.42) 11,119,834.63 (5,525,181.77)

2025 (3,571,123.04) 12,231,818.09 (6,185,699.95)

2026 (3,857,679.20) 13,454,999.90 (6,912,269.94)

2027 (4,158,563.16) 14,800,499.89 (7,711,496.93)

2028 (4,474,491.31) 16,280,549.88 (8,590,646.63)

2029 (4,806,215.88) 17,908,604.87 (9,557,711.29)

2030 (5,154,526.67) 19,699,465.35 (10,621,482.42)

2031 (5,520,253.01) 21,669,411.89 (11,791,630.66)

You did NOT BUY House


22/22

You BOUGHT House

Total Asset at the

end of the year

House Value at the

end of the year

EMI Status

1,784,000.00 2,000,000.00 Still Paying EMI

1,751,800.00 2,180,000.00 Still Paying EMI

1,722,050.00 2,376,200.00 Still Paying EMI

1,695,278.50 2,590,058.00 Still Paying EMI1,672,081.03 2,823,163.22 Still Paying EMI

1,653,127.54 3,077,247.91 Still Paying EMI

1,639,170.62 3,354,200.22 Still Paying EMI

1,631,054.53 3,656,078.24 Still Paying EMI

1,629,725.17 3,985,125.28 Still Paying EMI

1,636,241.13 4,343,786.56 Still Paying EMI

1,651,785.86 4,734,727.35 Still Paying EMI

1,677,681.10 5,160,852.81 Still Paying EMI

1,715,401.69 5,625,329.56 Still Paying EMI

1,766,591.97 6,131,609.22 Still Paying EMI

1,833,083.78 6,683,454.05 Still Paying EMI

1,916,916.40 7,284,964.92 No EMI Payment2,020,358.50 7,940,611.76 No EMI Payment

2,145,932.33 8,655,266.82 No EMI Payment

2,296,440.44 9,434,240.83 No EMI Payment

2,474,995.10 10,283,322.51 No EMI Payment

2,685,050.76 11,208,821.54 No EMI Payment

2,930,439.80 12,217,615.47 No EMI Payment

3,215,411.94 13,317,200.87 No EMI Payment

3,544,677.70 14,515,748.94 No EMI Payment

3,923,456.26 15,822,166.35 No EMI Payment

4,357,528.22 17,246,161.32 No EMI Payment

india rent vs buy

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