Should I buy a home with a loan or continue renting?

Buy if: you plan to stay 7+ years in the same city, can afford 20% down payment without emptying savings, EMI is less than 30-35% of take-home, and you have a stable job. Rent if: you are in a high price-to-rent ratio city (Mumbai, Bengaluru), have investment capital that can earn more than 7-8% post-tax.