Should I Buy a House or Rent a House?

Hello Ryan, I recently purchased a house in Mumbai after thinking a lot, is it better to rent or buy a house? I can help you with some points that will help you make up your mind. The whole matter of buying vs renting is personal and your current situation will determine the answer. Let me expand on this.

Is It Better to Buy a Home or Rent?

First of all, see where you stand in life right now and whether you are ready to settle down and have a house, which is a big investment for anyone. If the answer is no, then you should drop your thinking caps and turn to renting. 

However, if you are in a state to buy a house and go for an investment, then, there are things you should consider to understand whether it is the right time for you to buy that house or rent.

Benefits of Buying

1. If you want to build a long-term asset, buying would be the right option. Instead of paying rent, you can save it and put it into investing in your house. The rate of appreciation in India is 8 to 10% a year, which of course depends on several factors. But would give you steady growth forward.

2. A house brings a sense of safety and stability into your life. In tier 1 cities like Mumbai and Bangalore, you can expect good returns on investments in the right regions. If you wish to rent out then you can expect a good rental yield, provided that you go through the market trends.

Benefits of Renting

1. The cost of renting is a smaller financial burden. You can choose the place as per the rent you’re comfortable with.

2. Renting also offers flexibility as you can switch to a different place in a completely different city.

So, I have lined up the benefits of both buying and renting which will help you decide should I buy a home or rent. I suggest you analyse your needs, desires and preferences at present and then make a call. This is all from my side regarding whether is it better to rent or buy a house

Buy or Rent your Ideal Property at Zero Brokerage Via NoBroker! Some related information:

What makes more sense financially to buy or rent a flat in Noida?

 

Hi. I am a realtor based out of Bangalore. I find a lot of confused clients questioning buying home vs renting. To help several people resolve this confusion, I am writing a detailed answer on the subject. You can find all the necessary information below.

Which is Better Between Rent Versus Buy House?

The answer to this can differ from person to person. As this is more of a question where you’re seeking advice, I would like to give my opinion on the subject of buying vs renting.

Multiple factors come into play when you look to choose between buying and renting. They are as follows:

1. Income Status:

   The first deciding factor that comes into play is your income. Renting a house is a steady expenditure that your pocket bears every month. However, buying a house is a big financial responsibility which may require a home loan in cases where you need help to buy your house. So, you must analyse your income and expenditure to decide whether your current status allows you to buy a house or not.

2. Location:

   The next point that you need to consider for buying home vs renting is the location. This is because different cities offer you different rates and returns. For example, in Bangalore, the real estate market is booming, and it will continue to grow. So, if you have the financial backup to buy a house in the long run, it is a good investment, as the rent will escalate in the future. However, in a tier-2 city, the earnings on house renting are not that great. So, you must buy a house only if you’re looking to reside in it for a long time. Otherwise, renting isn’t a bad option as the rents are comparatively lower in tier-2 and tier-3 cities.

3. Need:

   As stated in the 2nd point, Bangalore gives a good ROI on house renting. Hence, you should see your need, not just now, but for the future. If you wish to settle down with your life, buying a house can be the way to go. However, if you look to keep moving and aren’t sure of your next few years, renting is a safer deal.

I hope the three factors I have mentioned will guide you to decide whether should I rent or buy a house.

Buy, rent, sell. Do all three at one place!

You Must Read: How to buy plot in Faridabad area?  Why is the security deposit for renting a home so high in Bangalore when compared to Delhi ? In Bangalore, Home owners ask for 10 months of rent whereas in Delhi, they usually ask for only 1 month of rent as security deposit ?   

Buying or renting a house is depends upon the income of the family whether they can afford to rent or to buy, or to remain neutral, that stays on rent even though it can afford to buy. The cost or the rental value plays a key factor while deciding whether to buy or rent. While property rent is increasing by 9.79% and prices spiked by 11.59% over the past years. It is clear that the buying or renting depends upon the income of the family, buy or remain neutral it will also help to calculate how many years a household earning rs. 8 lakh per annum has to save to accumulate the down payment. Some cities are affordable to buy a house like Indore, Jaipur, Ahmedabad, Lucknow, Mumbai, Chennai, Kolkata,  Hyderabad, etc and these are also the cities to rent a house this ranking enables people's to buy or to rent. The rent and maintenance costs derive the average monthly cost of renting whereas adding maintenance cost to EMI calculates the monthly cost of buying. The lower the ratio is quite clear to rent and the higher the ratio it is quite clear to buy.