Skip to main content

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

Popular posts from this blog

Quick Wellness Byte - Science of AGNIHOTRA

A fire is a fire, isn't it?  No! Agnihotra is a special healing fire from the ancient science of Ayurveda. It is a process of purifying the atmosphere through a specially prepared fire.  What is it? Agnihotra is the basic HOMA for all HOMA fire practices given in the ancient Vedic sciences. A pyramid of fixed size is used in the process of Agnihotra healing fire. Benefits: Agnihotra reduces stress Leads to greater clarity of thought Improves overall health Gives one increased energy Makes the mind more full of love The Wellness Town, near airport in Bangaore, offers a dedicated place for Agnihotra and the ritual will be performed every weekend for the wellbeing of entire community living there. Visit www.cmrsproperties.com for more details and to book your plot at the wellness town, Palm Hills, Bangalore's only Eco-living Destination.

WELLNESS with a property, no kidding!

There is a reason people go for vacation to a health resort, as Wellness is driven by environment, practically always! Now you can own this environment, carefully built for keeping the wellness in mind, within a driving distance from Bangalore Airport. CMRS Group launches its first of its kind Wellness Town with world class luxury and sports amenities, co-existing with out-of-the-world wellness  features. The wellness Town will be launched with a big bang that it truly deserves.  This April, come to The Wellness Town and celebrate being at peace with one’s self with better surroundings. A unique entertainment and soul-enrichment event, Mystical Night will happen in Bangalore. The event, which aims to encourage community living with the wellness amenities, will take place at The Wellness Town, Bangalore's only Eco-Living destination on 22nd April.  The idea behind organising this event is to establish Wellness through the power of proven methods of Herbal Gardens, Orga

How Green is your Luxury Home?

Do you know that a Green Home consumes 25% less water and saves upto 40% less electricity? It means that you will save atleast one fourth of water tankers standing in your villas or apartments and face less diesel crisis in case of longer power outages. Obviously, you also save lot of moolah in your maintenance cost. Luxurious Green India's super luxury homes are now defined by a life with no compromises.  Apart from an address that will make others turn green with envy, they also offer a Green lifestyle along with well equipped gymnasiums, swimming pools and gardens, complete home automation, and advanced home security systems.  Today’s Indian luxury home buyers are willing and able to pay extra premium, for a desire to stand out and be ‘a cut above the rest’, for super-luxurious green homes wherein price is not a constraint. How to Buy Green? First and foremost, look for a builder that has a view point on resource management. A builder like CMRS Group, which is an I