There is a simple way of judging whether to buy a property or whether you should
lease one. If you find a house that you would like to stay in, that is close to your
workplace or easily accessible from there, then buy it. But remember that the
Equated Monthly Instalment (EMI) on your property should not be over 40 per cent of
your monthly salary. That way you would be comfortable paying it back. You need
10-15 per cent of the cost as your personal contribution to the purchase, as banks do
not lend 100 per cent.
If you are paying a monthly rent that would constitute over 75 per cent of your EMI
please think in terms of buying. (Check out the MB Buy Vs Sell Calculator which can
serve as a broad indicator on whether you should lease or buy).
lease one. If you find a house that you would like to stay in, that is close to your
workplace or easily accessible from there, then buy it. But remember that the
Equated Monthly Instalment (EMI) on your property should not be over 40 per cent of
your monthly salary. That way you would be comfortable paying it back. You need
10-15 per cent of the cost as your personal contribution to the purchase, as banks do
not lend 100 per cent.
If you are paying a monthly rent that would constitute over 75 per cent of your EMI
please think in terms of buying. (Check out the MB Buy Vs Sell Calculator which can
serve as a broad indicator on whether you should lease or buy).
