Perhaps the most frequently asked question in an adult’s life is whether or not they should buy a house for themselves, or continue renting. Depending on whom you are asking, you could get polarised answers.
For a long time, the popular response was to buy the house. After all, who does not want to lay down their roots and gain a sense of stability? But, with rising prices for homes as well as an increase in interest rates for house loans, renting becomes a far more affordable option.
Renting A Flat: Is It Better Than Owning?
We all know the benefits of owning your own home. It seems to be drilled into our heads whenever the topic of renting versus buying comes up. Buying your own home gives you a sense of pride as well as security.
With hiking rent rates, people will prefer paying a fixed EMI and plan out their future costs. Additionally, when you own your home, you can expect little interference in your life.
But does that make it a viable option for buying a Pune flat?
Here Is Why You Should Think About Renting, Rather Than Owning
If you have decided to move into your first home and lay down your roots, you are constantly struggling between the idea of owning your place or renting it. Following are a few reasons why you may prefer paying rent rather than a hefty EMI.
Yes, buying a house in the early stages of your life gives you a lot of freedom later in life, but is that a valid reason for you to start planning your first mortgage? When you buy a house, it restricts your mobility.
Even if you feel that you have settled down in your job, you have no idea where future opportunities may lead you. Employers look for candidates who are willing to make transitions easily, and sometimes this may even include leaving the city that you are currently in.
2. No Home-Maintenance
When you own a home, the burden of maintenance naturally falls on you. There is no landlord that you can call up who will magically solve your problem without you needing to move a muscle.
Additionally, it allows you to not only get rid of any issues with your rented flat free of cost, but it also saves you the time it would have taken to supervise the repairs. Hence, renting may end up saving you time as well as money.
3. Makes Neighbourhoods More Accessible
When you are buying a home, you will want to live in a quiet suburban neighbourhood where you have beneficial facilities available close by. However, the prices of flats in Pune in such areas are quite high, and may even be out of your budget range.
For example, if you are looking for flats in Pune below 15 lakhs, you may have some trouble finding an ideal option; instead of compromising on the location, you can always opt to rent houses in those areas. Renting is always cheaper than buying a house, and hence, it makes homes and localities much more accessible to you.
4. What’s A Real-Estate Tax?
As a homeowner, one of the most significant burdens is real-estate or property tax. Although how the tax calculated differs from place to place, it is generally calculated based on an estimate of the value of your home. With rising property prices, this tax value can end up costing you a lot.
5. No Need To Remodel
When you are a homeowner, you can get bored of your home quite quickly. Everything that you liked about the house when you first bought it may have lost its charm as the years went by.
As a homeowner, you can remodel your house to your liking. However, that can end up being quite expensive. When you rent a home, you do not have to remodel anything, and in fact, you can move to a new flat in Pune as and when you desire.
6. Invest Wisely
Buying a house is a significant investment, but when you forego that you can make better investments for other phases of your life. Whether you want to invest in a better retirement plan or are thinking of starting your own business, you will have more money to invest in your future.
7. Upsize Easily
When you buy a home in the early stages of your life, it is not difficult to outgrow that space. However, buying a bigger house may be a burden. When you are renting, the story is entirely different; you can move out whenever you desire.
8. Fixed Rent Amount
Yes, rent prices can hike up; however, when you sign a lease, your landlord is not able to make any changes in the rent amount for that period. When your lease expires, the rent may increase, but you will receive prior notice. Hence it is not too difficult to plan your future expenditure accordingly.
9. Get Paid For Home Improvement
If you like the house you are renting, but want to make a few changes, you can go right ahead. Most landlords would be open to the idea of changing their house to appeal to future renters as well. Not only will you be able to remodel the home the way you want, but you will also be repaid the amount that it costs!
While for many buying their home outright may not be a problem, most people have to take out a loan to be able to own a home. When you rent, you do not have to worry about paying off your loans or having a bad credit score in case your payment is delayed.
Deciding whether or not to buy a home is a major decision. It is easy to see that while for some buying may be a viable option, renting is more accessible for others. There are several reasons, as mentioned above, why renting is cheaper than buying a house; however, the final decision depends on you as well as your financial plans.