CA calls 'rent money wasted' a middle-class scam. He explains the real math behind buying vs renting a house

For years, middle-class families in India have been told that renting is nothing but throwing money away, while buying a house is the ultimate invest/ment. But CA Nitin Kaushik is challenging that age-old belief. In a viral post, he called the idea that “rent money is wasted” one of the biggest financial scams that generations have fallen for — and he backed it up with hard numbers.

Kaushik explained that home loans often drain more money than people realise, even though buyers call it an “investment.” He broke down the math with an example: a house priced at Rs 1 crore with a loan of Rs 80 lakh at 9% interest for 20 years would mean an EMI of around Rs 72,000 a month. By the end of the term, the total outflow isn’t Rs 1 crore — it’s Rs 1.73 crore. That’s an eye-watering Rs 93 lakh paid just in interest.

🚨 The “Rent is Waste” Myth That’s Costing You Lakhs

“Rent money is wasted” is the biggest scam middle-class families believed.

Truth?
👉 EMIs often burn more money — you just call it “investment.”

Example 👇

•Home price: ₹1 Cr
•Loan: ₹80L @ 9% for 20 yrs
•EMI ≈…

— CA Nitin Kaushik (@Finance_Bareek) September 2, 2025

Put another way, this “extra” money is almost double what it would cost to rent the same house for years. Kaushik argued that while rent gives you flexibility and liquidity, a home loan ties you down with liability, even if society frames it as ownership. His bigger point? Buying versus renting isn’t an emotional decision, even though most families treat it that way. It’s a question of timing and math — and ignoring the math can cost you lakhs.



Homeownership can leave you broke?
Kaushik had raised the same alarm in an earlier post, bluntly calling the dream of homeownership a potential trap. He warned that rushing into buying a house can leave families broke rather than secure. The reason, he explained, is that most people empty their savings to arrange a hefty down payment, leaving themselves with no cushion for emergencies. What follows are years of living paycheck to paycheck as EMIs swallow up 40% or more of monthly income.

🏠 The Harsh Truth: Buying a House Can Make You BROKE

We’ve been sold the dream that “owning is always better than renting.”
But here’s the reality no one wants to admit 👇

❌ You drain all your savings just to arrange the down payment, leaving no safety net for emergencies.
❌…

— CA Nitin Kaushik (@Finance_Bareek) August 20, 2025

According to him, the problem isn’t with owning a home, but with buying it too soon and for the wrong reasons. People jump into loans simply because they believe “rent is waste,” without checking if they’re financially ready. That’s where many middle-class families end up handcuffing themselves to a 20-year loan that feels more like a burden than an asset.


He contrasted the supposed “security” of ownership with the overlooked benefits of renting. Renters don’t pay property tax, don’t shoulder repair costs, and have the freedom to move cities when a better opportunity comes along. Most importantly, their money stays liquid — free to be invested in ways that might generate better returns than real estate. Kaushik’s advice is clear: owning real estate is smart only under the right conditions. Families should aim for a solid emergency fund, ensure their EMI doesn’t consume more than 25–30% of income, and run the numbers carefully before signing a loan agreement. Otherwise, that dream home could quietly turn into the biggest financial liability of their lives.