Rent vs. Buy: Decoding the 1% Rule for Indian Homebuyers
Maharashtra
N
News18•19-01-2026, 13:41
Rent vs. Buy: Decoding the 1% Rule for Indian Homebuyers
- •Millions of Indians relocate to cities for work, facing the dilemma of renting versus buying a home.
- •Rising property prices, high EMIs, and additional costs like maintenance and taxes make homeownership challenging in metros.
- •The '1 percent rule' suggests a property is a good investment if its monthly rent is at least 1% of its value.
- •Financial experts advise considering all costs (EMI, maintenance, taxes, stamp duty) beyond just rent when deciding to buy.
- •In India, the 1 percent rule is a rough guideline as average rental yields are lower (around 2%) compared to developed countries; renting can be more practical in metros.
Why It Matters: The rent vs. buy decision depends on personal circumstances, job stability, and financial factors beyond just the 1% rule.
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