The present scenario of real estate in India has proved it to be an upcoming hot spot for reality investment. All big cities have shown positive rapid growth in real estate sector. Today the property prices are sky mounting and the interest rates are hitting the buyers hard. In such a scene we feel to go for a rented accommodation instead of buying a home. People are still not sure whether to buy home or rent a home. Actually it is not a new question for any of us. Everyone has to face it sometime in life. In a country like India owning a home is a matter of pride and a lifetime decision as it takes a huge portion of your income and savings. That is why it is obvious to give it a second thought before materialising the decision. Let me present you some of the facts about both the situations that may help you to take the right decision. Renting decision
- Rented properties are usually easy on your pockets while buying home is a big investment. With buying decision you have to be on tight budget.
- There is no liability in rented accommodation while in other case you have to pay down payment and loan EMIs monthly.
- You can move away any time from rented place while after buying a home it feels difficult to move out and go for rented house.
- In today’s time when people moves for better job prospects the rented place is better choice as they don’t need to worry for their home and to put it on rent decision.
- You can live where ever you go. Rented homes can be chosen near the work place, schools, in city centre while you have limited choice when you buy a home.
- You can use your money in more profitable avenues instead of blocking it into real estate for years.
- You can liquidate your investments instantly if invested in other options like stocks or financial instruments while it is difficult to get immediate sale of property.
- After buying home you need to pay maintenance cost and other expenses like wear and tear costs etc while the rented property has no such issues.
- If you are on a rented place you can switch to a better or luxurious accommodation after becoming financially sound but after buying a home in a location it becomes difficult to buy other home or switch.
- You no need to worry about the real estate prices or rising or ups and downs of interest rates if you live in a rented place but it surely affects the home owners.
- If the place where you are buying home is fully developed then the appreciation in price of property is not very much and over a period of years the depreciation also starts on the property. Instead one can invest in precious metal that has always shown upward rise.
- If you buy a home and wants to yield rents that is very low in India and also taxable. In short, the returns are less and the costs are big.
- Finding a good tenant is hard work and getting your property back sometimes difficult or takes your sweat as the laws favour tenants. Due to some bitter experiences people prefer to keep their properties vacant instead of renting them. In such a case there are no returns from your investment.
- You are liable to repay your home loan and interest for years and sometimes it feels like a burden on the shoulders of home owner. You cannot quit it.
Buying decision
- Buying a home is a lifetime decision both financially and emotionally. It gives you a worth of owning something while living on rent is nothing to do with it.
- When you pay interest for your home loan you may consider it as you are making asset instead of spending money while paying rent does not make you owner of any piece of property.
- Renting yields can be an advantage at the age of retirement. As the conditions are improving and new laws are coming in favour of home owner that will benefit the owners of property in future.
- If we see the past records the real estate has shown unbelievable growth and those who have invested in property five years back are enjoying capital appreciation in doubles and triples. Isn’t it enough to motivate you to invest in property?
- In spite of sky rocking prices people are opting to buy home as the graph is going upward only. Have you ever seen a person who was not happy after buying a home or regretting his decision? Buying a home is like building asset for you and your coming generation.
- The risk factor is very less while investing in properties as compare to investments in financial instruments or stocks.
- Various factors drive the real estate growth in a particular region and if you are smart enough to see the future prospects then go ahead and invest in property in that location as location plays very important role in real estate growth.
- You save on taxes when you buy a loan for as long as you pay the interest.
- Even though you don’t want to rent out your home you can move in and enjoy stress free life by not worrying about paying high rents.
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