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🏠 Home Loan Trap Tester
Does buying really beat renting? Find out with real numbers.
TRUE COST ANALYSIS | NO TAX BREAK ASSUMPTIONS
Property Details
₹
Current market price of the property
Typically 10–30% of property value
Varies by state (typically 5–8%)
Society charges, repairs, upkeep
Historical avg ~5–8% in Indian metros
₹
Annual municipal property tax
Net Wealth Comparison at Year 20
🏠 Total Buy-Side Costs
🔑 Total Rent-Side Costs
Year-by-Year Wealth Tracker ▼ Show
Sensitivity: Break-Even Property Appreciation
What is the Home Loan Trap Tester?
Most people believe buying a home is always the smarter financial move. This tool puts that belief to the test. It takes your actual numbers, property price, loan rate, down payment, monthly rent, and runs two parallel scenarios side by side over the time horizon you choose.
Scenario 1: You Buy
The tool calculates your monthly EMI, total interest outgo, annual maintenance, property tax, and what your home would actually sell for after accounting for broker and legal costs at exit. What remains after paying off the outstanding loan is your net wealth from buying.
Scenario 2: You Rent and Invest
Instead of locking your down payment into a property, you invest it in an equity index fund from day one. Every month, the difference between your EMI and your rent goes into the same portfolio. This compounds over time at the return rate you set. The tool then shows you which path builds more wealth, by exactly how much, and why.
What makes it honest: No tax deductions are assumed on either side. No Section 24 interest benefit, no 80C deduction, no capital gains exemption. Most calculators quietly factor these in to make buying look better. This one does not.
It also tells you the one number most people never ask, which is the break-even property appreciation rate. That is the annual growth rate your property must achieve just to match what a Nifty 50 index fund would have given you. If your property is unlikely to grow that fast, the math favours renting. Play with the sliders. Change the equity return, the loan rate, the rent growth. Watch the verdict shift. The goal is not to tell you what to do. It is to make sure you decide with your eyes open.
