This video is primarily targetted to the Indian market, even though the concepts are applicable at a broader level.
Link to the file used in the video for calculations:
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To buy a house or rent one has been one of the long pressing dilemmas in the minds of every first time home buyer or anyone who has been living on rent for a considerable amount of time.
Many a time people think of renting to be a wastage of money since we do not get anything tangible out of it. However, as we can see in the video, there are situations where it is financially beneficial to keep staying on rent and never buy a house for the entire duration of ones work life. On ther other hand, there are situations where renting a house is more financially prudent than buying a house.
In this video, we discuss about all the factors that go into calculations of effective money spent on rent, effective money spent on EMIs, tax benefits in each case, the value of the net final amount when the difference between the EMI paid and the rent is invested in good financial instruments, etc. We go through an in-depth analysis of when one should think of buying a house and when one should decide to just keep staying on rent forever.
The file in the link above can be used to enter values that correspond specifically to you. As most of the cells are formula-based, you can find out exactly how much money you stand to gain or lose if you decide to buy a house instead of staying on rent for all those years.
At the end of all our calculations, we can confidently conclude when one should buy a house and when one should keep staying on rent.
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