Smart Money Tip of The Week: How 1% rule can help you decide whether to buy or rent a property

The 1% rent vs buy rule states that a property is usually a good investment if the monthly rent you could get from it is at least 1% of the price you would pay to buy it. So, if a flat costs Rs 1 crore, it should ideally give you around Rs 1 lakh in rent every month. If the rent is much lower, buying the property may not make much financial sense.