Everybody dreams of owning their own home- that too in the best residential project. The coronavirus pandemic has also shown us the necessity of permanency- pointing us towards sealing life-influencing decisions. The most basic yet necessary of which is securing a roof above one’s head and that too in the best residential complexes with amenities like parking, lifts, children’s play area, indoor gyms and lounges etc.
For the world is now moving indoors.
Taking possession as the owner of your own home is a matter of pride and security. However, the decision remains whether buying a house is a smarter and more profitable investment or is renting a more viable option.
Should you buy an apartment or rent it?
Thinking long-term, both buying an apartment and renting has pros and cons. With an increase in property prices, a lot of young Indians opt for a rented abode. Let us take into consideration a subset of people who can afford purchasing their own home, and draw a conclusion.
Advantages of buying an apartment
- Home ownership provides security and creates a physical asset and also has prospective capital appreciation.
- Rent is an expense payable each month but doesn’t generate a physical asset, whereas paying an EMI proportionately increases ownership of the apartment.
- Buying an apartment in Kolkata or elsewhere, is permanent and negates necessity of relocation, which is a bothersome experience.
- One has more freedom decorating the interiors of their homes as they please, and also opt for the number of bedrooms they require.
Disadvantages of buying an apartment
- Prices of an apartment in metropolitan cities are usually high. However, purchasing a 2 BHK flat in Kolkata is more affordable than its counterparts like Delhi and Bombay.
- It’s a long-term plan, and one can’t change their apartment at will.
- All expenses, like repairs etc., has to be done by self. In a rented set up, the owner has some maintenance responsibilities.
Advantages of renting an apartment
- When renting, one can check in to areas of their choice- such as those closer to their place of work or school.
- Renting an accommodation is an easier option for the family on the move with transferable jobs.
- Costs are often divided between land lord and tenant- like maintenance expenditure.
Disadvantages of renting an apartment
- It’s tough to get rented accommodation in popular and convenient pockets. If one were lucky enough to come across one, the budget has to be taken into consideration as it might be too high and decided by the landlord.
- When taking a loan to purchase a house, one knows in advance what the rate of interest will be. There are rarely any hidden costs. However, the rent amount is decided by the landlord and doesn’t follow any set rules.
- A rented apartment is not a permanent accommodation. With rent cycles lasting tentatively 11months, at the end of it the landlord can choose to ask you to vacate the premises.
- Rent is a life-long expense and can increase over time.
Therefore, weighing the points mentioned above, it would be smarter to buy an affordable residential apartment over going in for rent. Also, with current low interest rates and added government incentives, it would be smarter for one to make the most of it. Not only that, in a time ridden with confusion over future moves, if one were to purchase their own apartment it would only serve to remove one headache from their kitty.
Be smart. Sign the papers with your name as the owner on it!