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Step 1
Open Buy Vs. Rent Calculator page available on iTrust website
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Step 2
Enter monthly rent you are paying for your current house in Rupees
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Step 3
Enter the price of house you are supposed to buy in Lakhs
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Step 4
Enter rate of interest that you will be paying for your new house.
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Step 5
Enter your proposed loan tenure in months
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Step 6
Enter your down payment in percent of total loan amount for new house
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Step 7
After filling all the above information, press 'Calculate' button.
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Step 8
The outcome will be represented in graphical format.
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Step 9
On the graph you will see shaded areas. Any shaded area below the X-axis indicates that during this time period it is not a wise decsion for you to buy a property, i.e., renting will be cheaper. Any shaded area above the X-axis indicates during this time period it is financially prudent for you to buy a property, i.e., renting will be more expensive. For your ease of use, we have assumed some typical annual and one-time expenses. You can see or change these by clicking on the 'Assumptions' button.
Whether you select to buy or rent a house, there is an opportunity cost associated with the money that you use. Whether its your down payment and EMIs in the case of buying, or the monthly rent in the case of renting, you could be investing this money into other opportunities.
