'Buy Rs 1.2 Crore Flat Or Keep Paying Rs 44,000 Rent': Techie Earning Rs 70 Lakh Seeks Advice

A Bengaluru techie earning Rs 70 lakh per annum (LPA) has sought the internet's help in deciding whether buying a house in the city was a financially sensible decision or continuing to rent. In a social media post titled, "Buying a house or continue renting in Bangalore," the 28-year-old software engineer detailed that he was currently renting a 1.5 BHK apartment in a good society, costing him Rs 44,000 per month.

The techie highlighted that he had amassed significant wealth and parked the money rather conservatively in fixed deposits, mutual funds, gold, and stocks

"I'm a 28M, I earn around 70 LPA. My portfolio is pretty mixed and somewhat conservative. I have around 45 lakh in mutual funds, 70 lacs in FD (avg interest rate around 7 percent), 15 lakh worth of physical gold, 35 lakh worth of US company RSUs already vested, 15 lacs in PPF and another 20 lakh in various savings accounts for now," the techie said.

Highlighting that he had zero liabilities and zero family commitments, the techie questioned if he should buy the flat he was renting.

"The cost of this apartment is around Rs 1.1-1.25 crore (850 sq ft). I ran some numbers and thought if I take a loan of Rs 80 lakh with 40 as down payment, the monthly EMI sits around Rs 65k. Which isn't that higher than my rent," he said.

The techie pointed out that since he was an unmarried guy, the renting experience can often be a nightmare in a city like Bengaluru, prompting them to lean towards buying the property.

"The loan amount itself isn't that huge and I should ideally be paying it off in 4-5 years. This saves me from the hassle of renting, which is a nightmare in a city like Bengaluru as an unmarried guy or girl," the techie said.

"Also, do consider that I will buy the house for sole purpose of staying in it. I know real estate is a bit bloated. And the job market is bad."

Check The Post Here:

Buying a house or continue renting in bangalore
by u/AdDeep6185 in indianrealestate

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Social Media Reactions

As the post gained traction, the majority of social media users advised the techie to go ahead with the decision to purchase the property.

"In the same boat, same age same income and same finances," said one user, while another added: "I'm almost 10 years on rent in Bangalore, and by now I've paid the equivalent of 20-30L in rent. That's almost the same as interest on an average home loan. The only thing stopping me from jumping in on taking a loan and buying a place is that my job is unstable."

A third commented: "I made a very similar decision a few years ago, and it turned out very well for me. I was paying 38k rent for a 2BHK in a gated society, and the house cost was Rs 1 crore, including registration. It's a tier 3 builder but has all amenities like a gym, a swimming pool, a squash court, and a very good location close to tech parks. This was back in 2023, btw."

A fourth said: "I have never heard a single person regretting their decision to buy a flat (after proper research). Just make sure to check prices in the locality, builder track record, and connectivity to IT companies and metro."