Should you buy a flat in Pune/Bengaluru/Mumbai or rent and invest the difference in an equity SIP? Compare 15-to-20 year net worth after stamp duty, maintenance, and rent inflation.
| Property Price | Monthly Rent | Rental Yield | 20-Yr EMI (80% Loan) | Financial Verdict (At 12% SIP) |
|---|---|---|---|---|
| ₹60 Lakh | ₹18,000/mo | 3.60% | ₹41,656/mo | Rent + SIP leads unless property grows >7.5%/yr |
| ₹1 Crore | ₹28,000/mo | 3.36% | ₹69,426/mo | Rent + SIP builds ₹1.4Cr+ higher liquid net worth |
| ₹1.5 Crore | ₹42,000/mo | 3.36% | ₹1,04,139/mo | Buy for lifestyle stability; Rent+SIP for pure IRR |
Residential rental yields in Pune, Bengaluru, Hyderabad, and Mumbai typically range from 2.8% to 3.8% per annum, while home loan rates sit around 8.5%.