Will it be more affordable to lease a house as compared to buying it outright?

1 Answer(s) | Miscellaneous

It all depends upon the time period, the location and property value in question. If you are living somewhere where prices of property are more reasonable and the home loan EMIs/payments are not as high in comparison to the rental amount, then it will always be more affordable to ultimately purchase the property. If the rent is somewhere at around 25% of the monthly home loan EMI, then you should stick to rentals since this will be cheaper and more sensible at the moment. You will have to consider factors like whether you can actually afford a home, overall acquisition costs, locational aspects and appreciation prospects for the property in the near future.

In some scenarios, leases will be more affordable than buying a home outright although you will ultimately be forking out a huge amount in lease costs. Instead, you may consider using the upfront money for the down payment and even if you are paying slightly more as the home loan EMI every month, you can create your own asset for the future.

Answered on December 1, 2020.
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.