Every buyer eventually asks: should I keep renting, or is it time to buy? The honest answer depends less on “renting is throwing money away” clichés and more on three practical numbers.
1. Your timeline
If you expect to stay in the same city for less than 4–5 years, renting usually wins — registration charges, brokerage and stamp duty on a purchase can take years to recover through equity.
2. The rent-to-price ratio
Divide the annual rent of a comparable property by its purchase price. If that ratio is under 3%, buying is expensive relative to renting the same space. Above 4–5%, buying starts to look more efficient.
3. Your down payment source
If a down payment means liquidating investments earning solid long-term returns, run the math before committing — a home is a lifestyle decision as much as a financial one, but it shouldn’t fight against your other goals.
There’s no universal right answer. What matters is running your own numbers rather than following a rule of thumb built for someone else’s income and city.