Renting vs Buying a house in Pune – What is better?
Confused about Renting vs Buying Property in Pune? Read on…
When it comes to making a property investment decision, the first thing question that arises is whether you should buy a property or rent it. In a metropolitan like Pune real estate trends show that customers make informed decisions before taking the plunge. Buyers planning to purchase 1 & 2 BHK apartments in Pune for instance are also open to exploring renting residential property.
Pros and Cons of Renting and Buying a Property
1. Renting Property
- Perfect for those on the Move
Living on rent is ideal for those who have to move to different locations frequently. Buying a home and setting it up is an impractical and time-consuming exercise while renting suits them perfectly.
- Minimal Financial Investment
Renting a home saves you the astronomical expenses that property investment entails. All you have to pay is a security deposit at the time of renting a home and pay monthly rent.
- Stability of Fixed Rent Cost
The rent amount remains pretty stable for a considerable period. Renting a property does not overburden you financially, which paying monthly installments do.
- Income Tax Benefit
Renting a property entitles you to claim a house rent allowance (HRA,) which owning a house will not fetch you.
- Low maintenance Cost
You don’t have to pay maintenance costs or repair bills when you rent a property. It is the landowner who bears maintenance these costs, including property tax, payment of society bills, and others.
- Frequent Shifting
If you live on rent, you have to keep shifting regularly. Packing all your belongings, setting them up all over again, and making adjustments can be taxing for the entire family.
- Little Chances of Owning a Home
For most people living on rent, it’s not easy to buy a home in due course due to the exorbitant rent amount they pay all along.
- No Returns
Rent fetches you no returns; you do not build capital or investment property, unlike people who own their own homes.
- Property Maintenance Problems
You cannot do up a rented home the way you want. The landowner may impose a lot of restrictions, and you have no choice but to comply with them.
Suggested Read: Are you ready to buy home in Pune?
2. Buying Property
- A Sense of Satisfaction and Achievement
Owning a house is conventionally associated with prestige and a feeling of happiness. It encourages most people to make an effort and buy a home instead of living on rent.
- Long-term Investment
Buying a home may attract higher expenses, but it’s a good long-term investment. The price of property usually increases over time, so it makes more sense to purchase property than live on rent.
- Your Own Lifestyle
You can furnish your own home the way you want, adorn it as per your taste, and carry out modifications without being restricted by anyone. You get more privacy and freedom to have pets too, which rented property doesn’t grant.
- More Economical than Renting
Calculations and computations reveal that buying a home turns out to be rewarding than renting in the long run. Although you have to invest more to purchase a house, at long last, the value of your home increases over time.
- Opportunity to Build Your Credit
If you plan finances wisely, you can maintain good credit, which is helpful for future endeavors.
Buying a home is in many ways, a costly affair. You have to bear several costs, maintenance, and repair bills, and several other expenses, which renting doesn’t involve.
- Costlier with Home Loan
If you go for a home loan, you have to make a down payment, pay a huge sum as interest, and bear other costs as well.
- Difficult to Shift if Needed
If you own a house but have to move to some other location, it’ll pose several challenges and inconvenience. Moving with all your belongings can be difficult and cost a lot as well.
- Property taxes
As an owner of a house, you’ll have to pay property taxes over and above other expenses.
When it comes to Pune real estate interpretations show that the city offers excellent options to both, homebuyers as well as those planning to live on rent. Assess your position wisely, preferably with the help of a real estate expert, and make a sound decision accordingly before taking your decision.