When contemplating whether to buy a property or continue renting, the decision often boils down to comparing the long-term financial implications of both options. Let’s take a hypothetical situation where you’re considering buying a property worth ???3.5 crores. For simplicity, we assume you’re looking at a loan of ???3 crores over 20 years and comparing this with paying a monthly rent of ???55,000.
The EMI Calculation:
For a ???3 crore loan at an interest rate of 7.5% over 20 years, the monthly EMI (Equated Monthly Installment) works out to approximately ???2,41,678. Over 20 years, you would end up paying a total of about ???5,80,02,709 to the bank.