By Arosh John | Founder, John Real Estate | Chief Editor, Thane Real Estate News
“Should I buy or rent?”
It’s the question almost every home seeker asks. But here’s the truth: there is no single winner, no universal formula, no one-size-fits-all. The decision is deeply personal. Each of you has to weigh your own circumstances, priorities, and goals to arrive at the answer that works best for you.
Since we are in 2025, let’s think of this question in today’s market reality.
The 2025 Backdrop
- Home Loan Rates: ~7.7–8.5%
- FD Returns: ~8% for senior citizens
- Rents: Rising ~5–8% annually in metros
- Rental Yields: ~4.8% nationally; ~2–3% in MMR
- Stamp Duty & Registration (Maharashtra):
- Thane: 7% stamp duty + ₹30,000 registration
- Mumbai: 6% stamp duty + registration
Tax Angle in 2025
- Old Regime:
- Buy → Deduction up to ₹2 lakh (home loan interest)
- Rent → HRA exemption available
- New Regime (default from AY 2024–25): Neither deduction is available
➡️ With tax benefits narrowing, the buy vs rent choice now rests more on cash flow and horizon than tax savings.
Thane Example – ₹1 Crore Flat in 2025
Buying Scenario
- Flat Price: ₹1 crore
- Down Payment (20%): ₹20 lakh
- Stamp Duty (7%): ₹7 lakh
- Registration: ₹30,000
- Interiors + Moving: ~₹4–5 lakh
➡️ Total Upfront Outflow: ~₹25–26 lakh
- Loan Amount: ₹80 lakh @ 8% for 20 years
- EMI: ~₹66,800/month
Renting Scenario
- Market Rent (2BHK in Thane): ~₹25,000–35,000/month
- Annual Rent: ₹3–4.2 lakh
- Price-to-Rent Ratio (PTR): ~24–33 (lower favours buying, higher favours renting)
What This Means
- A buyer deploys ~₹25–26 lakh upfront and pays ₹66,800/month EMI.
- A renter pays ~₹25–35k/month, saving ~₹30–40k monthly compared to EMI.
- That surplus, if invested at 8% returns, grows significantly over time.
- The buyer, however, builds equity in a home that could appreciate 5–7% annually with Thane’s infrastructure growth (Metro 5, Borivali Tunnel, new road links).
Quick Decision Pointers for 2025
Buy If:
- You’ll stay 7+ years
- PTR <25
- You’re in the Old Regime with deductions
- You value stability and ownership
Rent If:
- You may move in <5 years
- PTR >30 with low rental yield
- You’re on New Regime (no tax perks)
- You value flexibility and liquidity
Bottom Line
There is no universal winner in the buy vs rent debate — not in 2025, not ever.
The right choice is the one that fits your life: your horizon, your finances, your priorities.
👉 It’s your personal math. Buy if you want stability and equity. Rent if you want flexibility and cash-flow efficiency.
The most important takeaway? This is a decision you must think through for yourself.
Editor’s Note
The “Buy vs Rent” question has followed every generation of home seekers. In 2025, it remains as relevant as ever. This article is not a prescription—it is an explainer to help you think through the decision for yourself.
About the Author
Arosh John is the Founder of John Real Estate and Chief Editor of Thane Real Estate News. With over a decade of experience in the Thane property market, he specializes in luxury housing, investments, and infrastructure-driven growth. Through his writing, he aims to demystify real estate decisions and position Thane as one of MMR’s most compelling markets.
Disclaimer
The above analysis is based on average market data and statutory costs applicable in Maharashtra as of 2025. Actual costs may vary depending on locality, loan terms, tax regime, and individual circumstances. Readers are advised to consult professional advisors before making financial or investment decisions.
