It's the rate of the property's purchase price to the periodic rent. It's a good idea to acquire a house that is worth 20 times the periodicrent. However, for a house, you will end up paying 3 lakhs a time, If you pay a yearly rent of 25. Still, the total cost will be 60 lakhs, If you live in similar house for 20 times. Still, the rent-to- purchase rate favors buying rather than renting, If the property's price is lower than 60 lakhs. Still, if the house is worth further than 60 lakhs, renting it makes further sense.