EMI v/s Rent: What Works Best for Flats in Kolkata?

Purchasing a house is indeed the biggest decision in a person’s life. Not only do you brainstorm too much but also research and conduct due diligence to finally resort to the house of your dreams. In metropolitan cities such as Kolkata, finding a safe and convenient home for your family would mean a lot. However, it is not always possible to pay house price in a lump sum, which ultimately leaves people with 2 choices- EMI or Rent. 

Choosing between flats for rent in Kolkata or buying them depends on a number of significant factors and benefits individuals differently. Let’s read about them.

Benefits of Buying a House on EMI

1. Government Initiatives

Thanks to the Indian government, whose efforts have made home loan EMIs cheaper than paying rent. The reduction in repo rate means low-interest rates, making borrowing cheaper, thus encouraging affordable home loans. 

2. Additional Income

By renting 1 BHK and 2 BHK flats in Kolkata to young professionals, buyers can get additional income through rent and can use it to pay off their EMIs. There are limited subletting rules to stop them from earning rents. This will also help people looking for flats for rent in Kolkata.

3. Investment

Buying a property, be it an independent house, or a flat in Kolkata, or any other city, is a long-term investment. With the periodical boom in real estate, the prices of houses are rising. However, even in this scenario of rising rates, real  estate in India has witnessed an upward trend.

4. Tax Benefits

Deductions for the repayment of the principal amount of home loans come under Section 80C. Under this section, deductions of up to INR 1.5 lakh are allowed post completion of the house construction. 

On the same grounds, under Section 24(b), Income Tax for Home Loan, you can avail benefits on the interest amount of the home loan. Moreover, you can avail tax deductions of up to INR 2 lakh on the interest of a home loan for self-occupied property. Also, there is no limit for a ‘Non-Self-Occupied Property’.

Benefits of Opting Flats for rent in Kolkata

1. Renting seems to be a viable option for young professionals who change jobs or companies in relatively shorter periods. For them, buying a house in Kolkata, even on EMI won’t be a suitable choice.

2. Secondly, the security deposit by a renter is usually lower than the down payment for an apartment. Hence, for most individuals, it is convenient to choose renting a flat rather than buy one.

3. If an individual is living in a rented house, 1 BHK or 2 BHK flats in Kolkata, etc. he can claim for HRA benefits.

Conclusions

Both renting and purchasing a house through EMI in Kolkata have great benefits. On one hand, where a rented house allows you a certain amount of flexibility and low expenses, EMI gives you your own house with comparatively larger freedom on the other hand. The choice remains with the individual, as to what factors are significant to him considering both present and future requirements.

Unsure between renting or buying a house on EMI?

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