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Buy or Rent, What should you do?

The choice between buying a home and renting one is among the biggest financial decisions that many people in bigger cities need to make. But the costs of buying a home scares many people off when they compare the EMI with their current salary. It may not be always true as with the tax benefits your effective in hand salary increases and your balance salary after EMI instead of rent does not reduce much. Also the decision to buy becomes easier if you choose to buy from CMRS Group, which offers CMRS Royal Orchid, luxury smart, green homes starting from 33 lacs and give the possession to you in little more than a year.

Buying Cost
  1. Initial costs are the costs you incur when you go to the closing for the home you are purchasing. This includes the down payment and other fees.
  2. Recurring costs are expenses you will have to pay monthly or yearly in owning your home. These include EMI payments, maintenance and renovation costs, property taxes and homeowner’s insurance. Property taxes, the interest part of the loan payment are tax deductible. The resulting tax savings is accounted for in each item’s totals.
  3. Opportunity costs are tracked for the initial purchase costs and for the recurring costs. The former will give you an idea of how much you could have made if you had invested the down payment instead of buying your home.
Renting Cost
  1. Initial costs include the rent security deposit and, if applicable, the broker’s fee.
  2. Recurring costs include the monthly rent and the maintenance cost.
  3. Opportunity costs are calculated each year for both your initial costs and your recurring costs.

What if you stop paying 25k rent and buy a 35 lac home from CMRS?
Lets analyse a common scenario where one family is paying a rent of 25k per month, if they continue to live on rental home, they will spend more than a crore! These will also be the costs on top of rent, such as the fee you pay to a broker and the opportunity cost on your security deposit. Now lets see what happens If they decides to buy a luxurious home with CMRS Group for 35 lacs. lets say they decide to make a down payment of 7 lacs. 3.5 lac out of 7 lac can come from parallel funding from bank to pay for agreement.
Rent Vs Buy Costs for CMRS Royal Orchid over the next 25 years
Cost of renting
Rent paid for 25 years:
Rs. 9,962,844
Interest lost on amount paid as security:
Rs. 571,732
Broker's commission:
Rs. 25,000
Savings on renting
Tax savings on Rent:
Rs. 52,397
Net cost in renting:
Rs. 10,507,178 (Cost - Savings)
Cost of buying
EMI paid for 25 years:
Rs. 3,905,471
Down payment:
Rs. 700,000
Interest lost on the amount paid as down payment:
Rs. 412,156
Loan processing fees:
Rs. 28,000
Broker's commission:
Rs. 35,000
Savings on buying
Increase in property value in 25 years:
Rs. 3,486,987
Tax Savings on your home loan:
Rs. 95,588
Net cost in buying:
Rs. 1,498,051 (Cost - Savings)
Net savings if you buy instead of renting for
25 years:
Rs. 9,009,128
Your net savings per year:
Rs. 360,365
Buying is more profitable




Buying is more profitable to you over the next 25 years. You can save approx Rs. 360,365 per year if you buy with CMRS Group!

For any property advice, free legal advice and any other assistance while buying a property, feel free to call at  +91-7676-122-000 or send an mail to info@cmrsproperties.com

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