If you have been living in a metro city for work, the chances are that you are renting a living space. After a few years, you may want to reside permanently there. In this situation, you can either continue renting or buy a house of your own.
Everything in metro cities is costlier, and properties are no exception. At the same time, you might not like living with constraints, sharing a small space with your family, and paying high rent if you have decided to relocate.
So, is it better to rent or buy a house? Well, it all depends on your budget and your living situation.
Pros of buying
#1 A sense of ownership
Having a home of your own can give you the security of ownership as long as you live in the city.
#2 Rental income and reselling
Buying a house can be financially viable when property prices are low and the expected appreciation is high. You can later let out the house on rent or resell it.
#3 Freedom from high rent
If you are paying exorbitant rent but the home loan interest rates are low, you can buy a house with a housing loan. Estimate the cost of your property and use aloan EMI calculatorto evaluate your monthly EMI payable. If it is less than your rent, you can go ahead.
Additional Read – Buying a House vs Renting a House- Which is Better for Newlywed Couples?
Cons of buying
#1 High cost of living and maintenance
Even after you purchase ahome in a metro city, you will have to bear additional charges for stamp duty, maintenance, interiors, and other kinds of upkeep from time to time. In metro cities, these costs can be high.
Pros of renting
#1 Lower liability
Renting does not burden you with home loan repayments, property tax and other legal issues that come with property ownership.
#2 Inexpensive when interest rates are high
If you avail of a loanat high interest rates, your EMI will be much higher than your rent. So, in this case, it is better to rent.
#3 Ease of moving
If you switch jobs, you can leave your rented house and quickly shift to another one near your office.
Additional Read – Plot vs Flat – Which One Is the Better Investment Option?
Cons of renting
#1 Less freedom
For many people who live and work in metro cities, rent feels like a compromise because they have to put up with lack of space, constraints, and lack of freedom.
The bottom line
Now that you know the pros and cons of renting vs buying a house, carefully analyse your current financial situation and plans before you make a decision.
If you want to finance your dream home, use a loan. For affordable housing finance, we at Tata Capital are here for you. You can avail of housing loans at attractive interest rates and opt for flexible EMI options. Visit our website to check your home loan eligibility and learn more about our offerings.