What is better – Buying or Renting?
The economics of buying versus renting a home has been one of the most debatable topics in India. The costs associated with both are so varied in nature and weight that it becomes a complicated decision. Factors like capital rates, rental rates, mortgage eligibility and property taxes are significant ones in reaching the decision.
Here’s a sneak into the merits as well as demerits of buying and renting a property. A careful analysis of these in individual perspectives would help you to reach the right decision for yourself.
|Merits of Buying a property
|Demerits of Buying a property
|Merits of Renting a property
|Demerits of Renting a property
At times, renting a home also allows you to stay as close to your preferred location (based on proximity to educational institutions or your workplace), where you might otherwise not be able to afford a home.
Going by the merits and demerits listed for renting and buying a home in India, we can clearly see that the merits of one, closely become the demerits for another. But the one thing in common to both is that it commits you to a regular outflow of income, in the form of either Rent or EMI.
Therefore, the ideal way to help you decide whether or not it makes sense to stay on rent for a long term is if the rent amount is lower than paying EMIs for the same time period. Also, taking into account the amount of tax to be paid could help you reach the right decision.