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Most of India dreams of living in a metro city like Mumbai or Delhi at least once in their lives. The ones who do are faced with a tough question, should we rent or buy a home?
While some would prefer to take out a home loan right away, others would think of choosing a personal loan considering how huge the rent and living costs the city takes out of you.
What one needs is a cool mind and a list of pros and cons on whether to rent or buy a home in a metro city. We made one for you right below.
For most Indians, buying real estate is considered a status symbol and the sign of a responsible adult. Plus, if you’re able to do that in a metro city, you are considered to have, well… MADE IT!
There will always be demand for housing in metro cities like Mumbai and Delhi, so, if you own a home here, you’ve made a solid investment. You not only save on rent but if you were to move to some other place, you can put your house on rent and see a considerable sum enter your savings account every month.
Most people will choose a home loan to finance their dreams of buying a house. But, the interest rates in India for housing are on the higher side and the loan repayment period will easily be over 15 years. So, you end up paying more money than the original loan amount.
Even if you’re able to buy a home, you’d have to shell out money for stamp duty, maintenance, interiors, and other kinds of upkeep from time to time. A lot of people end up using their credit cards indiscriminately due to these expenses.
The rate of increase in rents is quite affordable as compared to a housing loan interest rate. Also, if you’re living with someone, both partners can easily afford the rent and you don’t have to break your savings accounts on this.
If you don’t like or enjoy living in the same space anymore, you can easily move to a rented apartment somewhere else in the city. India’s metro cities have diverse regions when it comes to renting so there is something for everyone.
When you’re living in rented premises, you’re always under worry due to the landlord/landlady on rules and regulation: who can enter, who cannot, damage or renovation to the house, etc. And then there is the bigger pressure of if your lease will be extended or not.
Owning a home gives you a kind of mental comfort that’s rarely seen in a rented apartment. From painting your home to making changes to doing what you want, you don’t have to seek permission every time.
So there you go! While there are many pros and cons to both buying or renting a house, it is always advisable to invest in a property when you are financially ready to make the big leap.
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