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Your guide to buying or renting in a metro city: Pros and Cons


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.

Pros of buying a home in a metro city:

You fulfil a dream aspiration

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! 


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It’s a solid real estate investment

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.

Cons of buying a home in a metro city:

The interest rate can be exorbitant

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.

The cost of living is too high

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.

Pros of renting a home in a metro city:

It’s affordable

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.

You can move anytime

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.

Cons of renting a home in a metro city:

A knife over your head:

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.

The lack of ownership:

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. 



The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.