1. Need to consider returns on 6.5 (7.5 -1) (@8%) and deduct these gains from expenses, since he is willing to put down for buying the house, which he will not in rented case. 2. For calculation on owned house, Any perceived gain of the bought property over the next 20 years should be considered (even if u assume avg 2-5% appreciation on 25 lakh property means a lot). As mentioned in the article, either of these cases may prove costly depending on the parameters involved, but the article needs to consider these parameters as well.
