Many people have provided some corrections or raised questions about the validity of analysis.
I would like to add one more valid point:
The author has done calculation for 20 years only, what about next 20 years or whole life (continuing with children also)?
Once you complete 20 years: 1. If you opted for buying a house, loan is already paid, house is yours. you can live in it without further expenses.
2. If you opted for renting, you will still continue to pay rent all your life...... irrespective of the fact whether you are still earning handsomely (retired)? I assume, the other benefits of paying less money as compared to EMI wont be able to fetch you a good decent house after 20 years..... Just consider the pressure on land and housing with increasing population in India and everyone wants a decent urban living.
So, someone who decides to pay rent today for next 20 years will continue to pay rent all his/her life. After 20 years, the homes which are 25 Lacs today... may cost multi crores.
What i believe is simple: If you are frequently changing your location/city... you have no option. But if it is possible for you by any means, own a house! Your old age will be more respectfull and secure.
