Renting is throwing money away.
So is most of a new EMI.
81%
Of a first year home loan EMI that is interest, not equity you own. Paid to the bank. Gone the same way rent is gone.
A friend told me over the weekend that renting is throwing money away. He wants to buy. Fair instinct, most of us grew up hearing it. So I pulled the actual numbers on a one crore flat. In year one, more than eighty paise of every EMI rupee is interest. He would be throwing money away too. Just to a bank instead of a landlord. The real question is what happens to everything left over.