A Bengaluru resident purchased a property in 2011. Many felt it cost too much. Ten years later, selling that same home funded a new, debt-free apartment in Pune. He even had money left for investments. This story revives an old Indian discussion: should you buy a home or invest in mutual funds?
A chartered accountant, Akhil Agarwal, shared this story online. His neighbor bought a Bengaluru home at what seemed like a high price in 2011. People doubted his choice. But years later, the property was not just a good home for his family. It also grew enough in value to pay for a better home in another city.
When he relocated to Pune, the sale of his Bengaluru house bought him a luxury apartment outright. He also had extra cash. Agarwal stated, “Real estate offers family stability and peace of mind.” He questions the common choice between mutual funds and owning a home.
He believes people often miss a key benefit: saved rent.
A home costing ₹1 crore might have monthly loan payments of ₹60,000–₹70,000. Renting that same place could cost ₹20,000–₹25,000. Over 20–30 years, the rent saved by owning could be over ₹90 lakh. Add property value growth, which is often 3–4 times higher in major cities, and owning looks better.
Agarwal pointed out that most home-versus-fund comparisons use limited ideas. They rarely include rising rent costs, emotional benefits, or how much mutual fund returns can change. These depend on when you invest and which funds you pick.
However, the financial outcome isn’t always clear. In cities where rental income is very low compared to property prices, renting can make more sense. If the money saved on rent is invested wisely in mutual funds, aiming for a 12% annual growth, it might beat smaller property gains. This is especially true in smaller cities.
Still, owning a home offers benefits beyond just money. A paid-off home means no rent and no loan payments. You have a solid asset and a sense of permanence.