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Deepali Joshi
posted on 3 MayRenting beats buying in Chandigarh right now.
After running my numbers again, I'm questioning the entire 'rent is dead money' narrative for Chandigarh. My recent analysis shows EMI for a 2BHK in Sector 44 or Mohali Sector 71 is often 2x-3x the going rent. With typical rental yields around 2-4%, the capital appreciation needs to be huge just to break even. Everyone glorifies home ownership but ignores the massive opportunity cost of that down payment and higher monthly outflows. Is buying always better? I don't think so right now. Change my mind.
#emi-vs-rent#chandigarh-rent#property-investment#financial-analysis
Comments
It's not black and white, guys. Renting is great for flexibility and if you're not sure about staying in Chandigarh long-term. But if you plan to settle down for 10+ years, buying eventually makes sense, especially once your loan tenure reduces. The EMI eventually becomes less burdensome, and you own an asset. The key is to find a property that isn't overpriced and has good rental demand if you ever need to rent it out yourself.
I almost bought a 3BHK in Rasulpur last year, thinking I'd regret not buying later. Good thing I held off. The project is delayed by over a year already, and the builder's reputation isn't great. If I had put my down payment there, it would be stuck. Renting gives me flexibility, and I can invest my down payment money elsewhere for better returns, maybe even in mutual funds for now. Has anyone actually seen a significant capital appreciation in the last 2-3 years in Chandigarh beyond the initial hype?
Exactly! Liquidity is a huge problem with property.
To answer your question, no, not really significant appreciation unless you bought pre-launch in a very specific, high-demand project. My uncle bought a 2BHK in Sector 44 in 2021, and while the value hasn't dropped, it's not the 10-15% annual growth everyone talks about. Maybe 5-7% max, which barely beats inflation sometimes. Plus, liquidity is an issue if you need to sell quickly.
Totally agree with the original post. Buying feels like a trap right now with these prices. My budget is already stretched.
But what about the long-term appreciation? Chandigarh real estate has always been stable. Renting might save you money now, but you're not building any asset. Also, isn't rent increasing every year? EMI is fixed (mostly). You're only looking at current numbers.
True, people always forget the hidden costs. Brokerage, registration, interior work, it's a black hole.
Long-term appreciation is a good point, but are we seeing that kind of appreciation *now*? Property values in certain pockets, especially the newer ones, have been stagnant for a couple of years. My friend bought in Mohali Sector 71 two years ago and his property value hasn't moved much. Plus, maintenance charges, property tax, insurance – these are all extra costs that add up to ownership. It's not just EMI vs Rent.
Totally agree! I've been looking at 2BHKs in New Chandigarh, especially around Mullanpur Garibdass, and the prices are just insane. My EMI calculation for a 50L loan (after down payment) is like 40k, but similar apartments rent for 18-20k. How is this sustainable? My parents keep saying 'rent is dead money' but my bank account says 'EMI will kill your savings'. What are others seeing in terms of rental yield vs EMI?
Exactly! It's a gamble right now.
Haan bhai, same here! I checked a few projects near Manimajra, and the difference is even starker. Builders are quoting prices based on future appreciation, but current rentals don't justify it. Rental yields are barely 2.5-3% in most decent societies. Unless you're looking at a 10-year horizon, it's a tough call.