Buy vs invest · Wealth comparison tool

Buy a home now, or invest the
down payment? The honest math.

This model runs year-by-year for up to 30 years — with rent escalation, property appreciation, maintenance costs, MF compounding, tax benefits under Sec 24(b) & 80C, and rent savings reinvested. No shortcuts.

Property & loan

Property value₹1.00 Cr

₹

Down payment (%)20%

Home loan rate (% p.a.)8.5%

Loan tenure (years)20 yrs

Annual maintenance (% of value)1.0%

Property appreciation (% p.a.)7%

Rent & investment scenario

Current monthly rent₹25,000

₹

Annual rent escalation (%)5%

Mutual fund expected CAGR (%)12%

Income tax slab

Stamp duty + reg (% of value)6.5%

Calculating…

🏠 Buy scenario

Down payment—

Stamp duty + reg—

Monthly EMI—

Total EMI paid—

Maint. cost (tenure)—

Tax saving (24b+80C)—

Property value at end—

Net wealth (buy)—

📈 Rent + invest scenario

DP invested (MF)—

Monthly diff (EMI−rent) invested—

Total rent paid—

Final MF corpus—

LTCG tax on MF exit (10%)—

Rent at year-end / month—

Net wealth (invest)—

Year-by-year wealth comparison

Year	EMI paid	Rent paid	Buy wealth	Invest wealth	Difference

What this model accounts for

Buy scenario includes: ✓ Down payment + stamp duty outflow
✓ Monthly EMI (interest + principal)
✓ Annual maintenance cost
✓ Tax saving under Sec 24(b) — ₹2L/yr interest deduction
✓ Tax saving under Sec 80C — ₹1.5L/yr principal deduction
✓ Property appreciation (compound)
✓ Net wealth = property value − remaining loan

Rent + invest includes: ✓ Down payment fully invested in MF (compound)
✓ (EMI − rent) difference invested monthly
✓ Annual rent escalation (year-by-year)
✓ 10% LTCG tax on MF gains at exit
✓ When rent exceeds EMI, no extra investment
✗ Does not include buying later (open-ended comparison)

12% MF CAGR is a long-term equity expectation (based on Sensex 20-year history). Actual returns vary. This model assumes you invest the EMI−rent difference every month — which requires financial discipline most people underestimate. Property also has non-financial value (security, stability) this model cannot quantify.

Buy a home now, or invest thedown payment? The honest math.

Buy a home now, or invest the
down payment? The honest math.