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I stay in Bangalore and pay a monthly rent of 25K. Would buying a house and paying EMI make more sense for me than paying the rent?

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0 2020-09-14T19:18:11+00:00
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In India, investment in the form of a property is given much more importance than other types of investment like stock market and mutual funds. Although this concept is taking a shift, buying a house would be better than renting. Here are a few things that you should consider before buying a property in Bangalore: 1. Current rental and inflation along with the rental and inflation rates in 3-4 years. If it is at increasing at a higher rate, opt for buying a house 2. Loan amount and 20% down payment amount 3. Period of loan, interest rate and so on. It is advisable that the loan tenure should not be more than 15 years. Apart from this, the EMI should be 25-30% of your current salary. 4. Locality and availability of basic necessities: schools, colleges, hospitals, connectivity to major localities, water supply, electricity and other basic amenities. 5. You should also consider the total net worth and prospective appreciation value of the property. Check if you will get the expected return from the property.
0 2021-12-27T12:30:12+00:00
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Hey there,

There are many reasons because of which we have to move away from our homes. To pursue higher education, shift careers,  jobs to name a few. When I moved from Delhi to Bangalore, I thought about my salary and how to manage  my finances regarding monthly stays in Bangalore. I went through the same ordeal as you so I took a deeper dive into the matter.

Before taking a decision about Rent VS EMI. You need to consider the following factors. EMI:

EMI amount can vary because of a number of factors including the kind of loan and the loan period. EMI might lead you to develop high interest on your loan. This might lead you to reevaluate your financial habits. 

If you plan to put 20% down payment on your house and 80% loan. You will have paid more interest to the bank than the cost of loan itself.

RENT :

When you rent an apartment you are not overburdened with the high liability of paying EMI. With the option of renting a place, you can always shift according to your need, preference and current budget. You can also live in luxurious apartments and projects at a comparatively low rent. Renting allows you to have a more flexible approach in your life.

There are pros and cons to both renting and getting a house on EMI. You need to think about your situation carefully and decide your next step. As for me, I decided to put a hold to the thought of buying a property in Bangalore. 

This is the end to my answer about monthly stays in Bangalore. 

Buy or rent the house of your dreams ! Check out the real estate platform NoBroker to see properties in your area.  Read more : How to buy and renovate houses for profit   

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