I live in the city of dreams, Mumbai My flat costs ₹7 Crores but I pay just ₹1.5 Lakhs in rent Buying it on EMI would've costed me ₹5 Lakhs p.m. even after paying ₹1.4 Crores in down payment Here's why I won't buy a house [1] Rent is not burnt Rather than buying, if I invest: ₹1.4 Cr of Down-Payment and ₹3.5L (EMI less Rent) p.m say, in Nifty 50 Index Fund which gets me 12% p.a. for next 20 yrs? I'll have ₹48.13 Cr Even if flat grows at 7% p.a., it'll be worth ₹27 Cr [2] Buy a Home after having FIRE score How much money you need to never ever worry about money? Me: ₹6 Crores! At 10% growth I get 60L p.a I need 30L a year to live the dream life and another 30L reinvested to match 5% inflation After 20 yrs, I can have that house + ₹20Cr [3] Disproportionate Asset Allocation If I buy a house worth ₹7 Crores today, Most of my net worth will be allocated in a flat A flat is generally a laggard in terms of capital appreciation What for? Saving just ~2% per year? [4] Is it just about the EMIs? Did you forget that buying a house comes with: Registry [4-7%] Brokerage [1-2%] Heavy & recurring repair & maintenance Annual Property Taxes and what not! [5] More clarity over which city to live Right now, I am in Mumbai because of my work What if I feel like shifting to Goa? Or say, Manali? Buying a house will lock me not just emotionally but financially as well It might make more sense to buy a house in 40s I appreciate that some of you might have very strong personal reasons to buy a house and I respect that Just that, financially it might make more sense to defer this choice! What's your opinion now? Credits: Finance with Sharan