Apr 26, 2017

Why rent when you can buy

Everybody wants to have a house of their own. In India, people associate the idea of owning a house with a great sense of pride and personal achievement. However, it is never a good idea to invest in a property when the prices are going up. If the prices of the properties are going higher, then it is always better to rent a home instead of buying it. There has always been a hot debate among people whether it is better to buy a house or rent a house. While both of these options have their own merits and demerits, it is always better to consider one’s personal needs and the market condition before finally deciding on a course of action.


Numerous theories have already been put forward to help people discern whether renting a home is better than actually buying the house at a particular moment or vice versa. One of the ways to decide between renting and buying a house involves calculating the total rent per annum and seeing whether it is less than 2% of the actual monetary worth of the property. If that is the case, then renting is a better option. However, if a person needs to pay more than this amount as rent, then buying the home would be advisable as the EMI or equated monthly installment payable for the property would be more viable than paying such a high rental amount.

Another way to decide if it is better to buy or rent a home is by multiplying the monthly rental amount for the property by 240 to see whether the house is available for purchase in an amount less than this. If that is the case, then buying the property is a better thing to do in the long term. A house is a major asset and the EMIs and down payment can really work together to give rise to a stable asset. Additionally one must also consider personal financial situation before actually buying a home.

There are a number of things that one should keep in mind prior to buying a home. These are discussed below in brief.

  • Firstly, a person should consider the length of time he or she intends to live in that place. If the person aims to stay there for a long time, then buying the home is a practical thing to do. On the other hand, if a person has a transferable job, then renting might be the better option since it provides with the mobility that the person seeks. Generally it takes around 5 to 6 years for a property to break even.
  • The second thing that one should think about while buying or renting a house is the overall condition of the housing market in a particular city where one intends to buy the property. If the general pricing of homes is super expensive, then renting is probably a better option than buying.
  • The financial condition of a household is also an important factor to consider. If the house itself can comfortably hold surplus amount of cash, it becomes easier to actually commit to the EMI.
  • It is also necessary to take into consideration the investment potential of the house.

The property market in Bangalore is a stable one compared to those in cities like Delhi or Mumbai. Therefore, it is always better to buy Luxury villas in Bangalore. There are currently a number of projects coming up in different parts of Bangalore that offers decent pricing so that people in this city can have their own homes. The infrastructure of the city has also gone through a major change in the recent times. This has made it possible for people to buy homes and have a comfortable life in various parts of Bangalore that were once considered remote. Investing in a property in Bangalore is also deemed lucrative in the long term.    

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