Should I buy a house or rent a house

Looking back in history, it was always profitable and suitable to buy a house rather tan renting one. The reason was simple- it was a stable investment and the house was expected to serve the needs of its inhabitants for decades on end. In today’s times, however, that need not be the case. There are a lot of factors one needs to carefully consider in order to make the right choice between buying a house and renting one.

Before Buying A House

A house is a mammoth investment and one cannot be expected to carry the burden all at once. Which is why almost every home buyer opts for a housing loan. All banks and other lending institutions only offer 80-90% of the loan amount and the rest has to be born by the individual himself. Hence, buying a home cannot be a hasty decision and one has to have enough savings in hand in order to fulfil this financial obligation.

The debt-to-income ratio is one of the most important aspects the lender will look in to in order to safeguard their own interests. A good ratio- preferably under 50% will also ensure that one can lead a comfortable life despite having to pay off the loans for years on end.

An own house restricts mobility. An own house justifies its investment only after 6-10 years. So, it makes little sense to buy a house for anyone in a transferrable job or having plans to move in a few years.

Before Renting A House

Considering the fact that rental properties, especially flats in Kanakapura road are generally priced at 1.5-2.5% of the price of a property in a city like metro, it seems a good deal.

The availability of the house in a particular location is also a factor that drives people to rent rather than buy a house. Living in a house that is close to the office is favourable, it reduces commute time and ensures more time to spend with the family. However, most offices, especially IT companies are concentrated in a few locations and the property prices can shoot through the roof. Renting a place in such locations, however, are much more affordable.

The only financial burden one has to face while renting is the initial deposit, and the monthly rent paid. The annual increase in the rent is about 10%, which is a standard. The only additional costs that one has to incur is during shifting.

There are a variety of reasons and factors to consider before making the decision of buying a house or renting one. Before going to a property dealer or property developers in Bangalore. Weighing down the pros and cons of both aspects will help ensure no financial burden while you shift your house.

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on Mar 26th 2019 04:49. Viewed 318 times.

Share on APSense

Comments