Buy or Rent: How to make the right choice?
While owning a house may provide a sense of stability and serve as a huge capital asset, taking a house on rent gives greater financial and physical flexibility and helps to decide whether to buy or rent a house has it’s crucial for your financial and emotional well-being and should be taken after a lot of cogitation. Here are some of the aspects one must consider, before “Buying or Renting” a house. Most likely flats serve has a better option for rental or buying purposes has it satisfy your requirement for housing.
Advantages of buying.
The biggest advantage of buying a property such has flats whether 1 or 2 BHK is that you end up with a massive asset of your own in your hand. If the house is purchased, by availing on a home loan, the EMIs also instill financial discipline it may prevent borrowers from squandering away their money. Moreover, the capital value of the house/flats appreciates overtime, it may become one of the biggest contributors to your net worth. If your family is not more than 4-5 members then having a 1 or 2 BHK flat is your best option.
Buying a house, before one retires, also provides a sense of financial security. Otherwise, you might have shoulder the burden of paying rent and also having to move from one home to another, when the lease agreement ends. Not having your own house and paying for a rented accommodation can also snatch away your happiness. Owning your own house is also emotionally satisfying. And it leads to a sense of stability. As an owner, you can also redo the interiors as you like.
Advantages of renting.
“Sometimes, the EMI alone may take up 50-60% of an individual’s take-home salary. As a result, people are compelled to live very cramped lifestyles, with not enough money for holidays or career-enhancement courses. Other goals, such as saving for children’s education and marriage and for their own retirement, suffer due to this liability,” For rental stays flats are good has in cheaper rates you can staying in a flat.
Making the right call
Buy a house, only if you intend to stay in that particular neighborhood, for at least four to five years. If you plan to move to another part of the country or abroad for any reason, you may be better off not buying a house. Those with uncertain earnings, for such uncertainty it’s wiser to own a Flats 1/2 BHK that will ensure your plan to move to another location has Flats can easily be sold or purchased because People like to move in a flat rather than own a Bungalow, Townhouse etc.Affordability should be the most important criteria. The combined EMI on all your loans (house, car, personal, etc.) should not exceed 40% of your take-home salary. You should also have enough money for the down payment on the house, which could amount to 15-20% of the cost of the house.