Renting or Buying
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Renting or buying? It is an old debate. If you go by your elders’ advice they would always motivate you to own a home for yourself. At the same time, there are millions of people who do not find property buying a financially sensible decision.

Recently an industry research study suggests that the young generation of India prefers renting over buying. It is a shocking inference. Although many of us may have a different perspective. But, would you want to live in someone else’s property all your life? It is okay to rent a house in the early years of career but once your family grows up, your children may find it awkward.

While respecting everyone’s choice, I think that renting a home should be a temporary choice until you become sufficient enough to own a property. Remember home is not just a roof over your head. But, it also balanced you when you are emotionally down. Thus, home buying is one of the prudent decisions of your life.

Let’s this in detail.

Mr. Animesh Tripathi, a 27-years-old software professional working in an IT company, moved to Noida from Chandigarh in the year 2010. He opted for a 2BHK independent floor in sector 45 RWA for Rs 12,000 a month. He lived there for a year and then the landlord increased the monthly rent by 10 percent to Rs 13,200 a month.

Animesh was still happy as he calculated that the kind of residential property he was using was worth Rs 50-55 lakh and he was just paying Rs 13,200 a month to use it on rent. According to him, the landlord was at the losing end. “Had he invested Rs 50 lakhs even in the bank fixed deposits, he could have earned an interest of at least 7-8 percent a year, thus making around Rs 30,000 a month,” he said.

Anyway he spent some 4-5 years on rent in Noida and in between he had to change his residence as the landlord asked him to vacate the property for some reason. One fine morning, he calculated that in the past 5 years, he paid rent of around Rs 10 lakh. Now that was a huge amount. And what did he get in hand? Literally nothing!

The average capital values of the properties which were available at Rs 50 lakh in year 2010 had reached Rs 65-75 lakh in 2016. If he had managed to buy a property that time, he would have not only saved rent of Rs 10 lakh but had also generated capital gains of 40-50 percent. His financial position could be much different if he had bought a home rather than renting.

So, if you are the one thinking that renting is better than buying property then have a look at this blog post. On a whole, the home loan EMIs, locality of your choice and the down payment amount might run high on your mind. But, these big things for today will turn into a valuable unit in the near future.

Therefore, calculate your budget and choose the best permanent address for yourself now.

So, do you still think that renting is better than buying?