INCOME TAX30 Sept 2026
Renting forever vs 30-year EMI trap: Expert explains what homebuyers should compare before choosing to buy or rent | Mint
Neeraj Mahajan of Godrej Wealth says comparing monthly rent with your EMI (equated monthly instalment) is too basic. Buying adds stamp duty, registration, loan interest, interiors, property tax and maintenance. Longer tenures cut the EMI but sharply raise total interest. Renting brings deposits, brokerage and moving costs. So compare both over the same period before you decide whether to buy.
Key Statutory Highlights
- Buying a home involves a down payment, loan fees, interiors, property tax, maintenance and repairs, while renting involves deposits, brokerage and moving costs.
- On an ₹80 lakh loan at 8% interest, a 30-year tenure reduces the monthly EMI by about ₹8,200 compared with a 20-year loan, but total interest rises by roughly ₹50.7 lakh.
- Neeraj Mahajan said buying should not depend on the expectation of a large rise in property prices to make financial sense.
Actionable Advice for Taxpayers / Founders:Work out both options over the same period for your own case, including the likely sale value, selling costs, unpaid loan and what a renter does with the money saved. A long tenure loan can free up monthly cash, so check it still leaves enough for other needs and emergencies before you commit.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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