Mumbai is the city of dreams. Every person living here has a dream of owning their personal space here. While the Builders in Mumbai such as the Chandak Group offer homes that are affordable to each category and class of people, there always lies a question of whether to rent or to buy a place where we wish to dwell. It is a major decision and there are so many things you need to consider before deciding to take the plunge.
Some people even if they have a lot of savings, prefer to stay in a rented house owing to the flexibility and the kind of amenities they get in a rented house. Meanwhile, certain people think, it's better to buy a house as it's a secured investment for the future and the one they can pass on to their kids. Buying or renting a home is always a debatable topic, where one thing seems to be better than the other.
In this section, we will analyze both the options along with the pros and cons. This will be helpful for you to understand which one would be more suitable for you.
BUYING
Buying a house or becoming the owner of one, gives you intangible benefits such as a pride of owning a house, stability in investment, etc. Though Builders In Mumbai provides various offers, the cost of buying is said to be more when compared to the cheap renting. With a home in your name, you have the choice to decorate and spruce it up as per choice, which is hardly feasible when it comes to rented property.
RENTING
Renting, on the other hand, is like small regular spending with no returns. You stay in someone else’s house and pay them the rent for using his facility as long as you stay there. A rented home does give you the flexibility of moving around especially if your job demands location changes. A recent study shows that millennials prefer to rent a home than buy it.
BUYING A HOUSE
Pros
Let us now see some benefits of buying a house
1. It is an asset: Yes, a home is always an asset for you. You may be paying an EMI but once that is over the house is yours for sure.
2. ROI: A home is a long term investment. Most likely the real estate prices will increase over a period of time. Also, with more developments happening in the area the prices of the property are likely to increase. So, you can expect a higher ROI.
3. Source of income: You can plan to convert your asset into an income as well. Yes, you can rent out the property if needed. It will give you a steady income flow.
4. Tax Benefits: If you have taken a loan for buying a new house, then you can claim some tax benefits too.
5. Choicest Décor: With your own home you are free to make changes in décor and other things which may not always be feasible in a rented home.
Cons
Now let us try to understand some things which hold back people from buying a house
1. Liability: If you are taking a loan for buying a home (most of us would take a bank loan) then loan is a liability for you. Every month you need to spare a big amount towards this liability irrespective of other expenses.
2. Pin down: Buying a home pins you down to that location. It would be difficult for you to move from that place for work or for any other reasons.
3. Maintenance Responsibility: You are responsible for maintenance and other fixes. You have to run around paying bills and other things.
4. Down Payment: While buying a house you need to have a lump sum amount ready with you to pay the down payment, registration charges etc. Most builders in Mumbai will have a tie-up with banks for loans but banks would provide only about 80-90% of the property value as loan.
RENTING A HOUSE
Let us now see some details about renting a house. There are a lot of people who would prefer to rent a house over buying it. We will try to understand why.
Pros
1. Flexibility: For many of us the office location may not be fixed. To avoid and reduce the travel time we would prefer to stay close to the office. This flexibility is possible only in the case of rented homes.
2. A new home every time: with a rented home, you get to live in a new home each time you change. With a different set of amenities, neighbors, and locations. It helps beat the monotony of a boring life.
3. Lower housing cost: The monthly rental is normally lower than your EMI.Which means you still have money in hand to spend on other things.
4. No Maintenance Responsibility: Most of the maintenance responsibility would be with the owner who would need to run around paying taxes and take care of other things.
Cons
1. Investment without asset: Even though you pay an amount monthly, you are not gaining any asset.
2. No Tax Incentive: There are no incentives you can claim in 80C and 80D against the interest and principal of your home loan amount.
3. No Fixed Rent: With the change in the rented home, the amount of spending on rent and other amenities will also change. This means your spending budget is not fixed. This can hamper your financial planning in the long run.
Be it a rented house or an owned house, having a home for yourself is always an asset. The reality is that it's only the financial status of a family that can decide if a person can stay in a rented house or get a home for himself. It also includes factors such as your work locality and your EMI repayment capacity. Choose wisely according to your capacity,as owning a home is a lifetime commitment.
No comments:
Post a Comment