Renting vs buying in Bangalore.

I don’t understand why so many think buying a flat in Bangalore is a bad idea!

I’ve seen people living in Bangalore for the last 3 years, planning to stay another 3, yet they continue investing only in SIPs and never even consider buying a flat here.

Their arguments:

“Renting gives us flexibility to move.” But if you’re in tech, almost every major company has an office in Bangalore. So where exactly are you moving?

“Real estate is a bubble, prices will drop. In the next 5 years, it won’t grow.” Really? If you believe India will do better in terms of jobs, then where will those jobs be? Obviously in Tier-1 cities like Bangalore. And if India doesn’t do well overall, then even Nifty and the stock market won’t hold up.

“Investing in markets gives higher returns.” Maybe—but don’t forget you’re also paying rent. Do you really think your rent + SIP will outperform real estate returns? Possibly, but let’s break it down.

In Bangalore, rents typically increase 10% every year—it’s practically a ritual. So you’re looking at a rising rent + SIP. Will that beat real estate? Maybe, maybe not.

But what if your SIP amount goes into your home loan instead? And since you own the flat, your rent expense becomes zero. That “saved rent” itself becomes your new SIP. Now, step that “rent-as-SIP” up by 10% every year. Doesn’t that look much better than continuing to rent?

On top of that, you get the sense of ownership, which no amount of SIP can replace.

Don’t let these so-called finfluencers mislead you.