There is a common thinking in India that staying on rent is a waste of money and your home is the real investment. This thinking is being taught to middle class for generations. But now some experts, such as CA Nitin Kaushik, are describing this thinking as a financial trap, in which people get trapped without thinking.
Suppose you buy a flat of Rs 1 crore, and for this you take a home loan of 80 lakhs from the bank. EMI of about Rs 72,000 will have to be paid every month according to 9% interest rate and 20 years period on this. That is, in 20 years, you pay around Rs 1.73 crore in total. While the price of the house was only 1 crore rupees. Out of this, about 93 lakhs go as interest only. That is, the amount you buy in the amount, you could have stayed the same house for many years. Still why do people consider it waste?
🏠 The Harsh Truth: Buying a House Can Make You Broke
Weve been soldie the dream that is always better than rending. But heres the reality no one walls to admit
❌ You drain all your savings just to arrange the down payment, leaveing no safety net for emergencies.
– ca nitin kaushik (@Finance_bareek) August 20, 2025
Buying a house: emotion or understanding?
Buying a house often becomes an emotional decision, what people will say, how long they will stay on rent, people take loans in a hurry. But there is no math behind this decision and this mistake is overshadowed.
People put their full savings in down payment. After this, more than half of their salary goes away in repaying EMI for years. outcome? There is no emergency fund left, nor flexibility in life. If you get a job in another city, then transfer is difficult, home repair expenses, and property tax also has to be paid itself.
🚨 The Rent is Waste Myth Thats Costing You Lakhs
Rent money is wasted is the biggest scam middle-class Families Believed.
Truth? 👉 Emis often Burn More Money – You just call it investment.
Example
• Home Price: ₹ 1 CR • Loan: ₹ 80L @ 9% for 20 YRS • EMI ≈
– ca nitin kaushik (@Finance_bareek) September 2, 2025
Renting is not a loss option
CA Nitin Kaushik says that fare returns in cities of India ranges from just 3.5% to 5%. That is, the rent of the house of 1 crore is usually not more than 25-30 thousand months. If you invest the same amount in different investment, such as mutual funds or stock market, then the same money can give you many times in 20 years. On the other hand, the return remains 6-7% in real estate, and only when the market goes well. The loan burden remains every month from above.
Do not decide in a hurry
Buying a house is not wrong. But it is necessary to think when, how and why to buy. CA Kaushik recommends that first create a strong emergency fund, plan in such a way that EMI does not exceed 25-30% of your salary and avoid some savings even after down payment. Take the property only when you plan to stay in it for 7-10 years.