Should you buy or continue on rent?

Everyone wants a house of their own. However, considering that investment in a property involves a heavy sum of money and the sluggish market indicating a ‘Buy now or wait?’ situation across India, the choice between buying a house and taking one on rent is difficult.

Some feel rent is like wasting money, when the same amount could be used to repay a home loan and build your life's biggest asset. Others, who have tight budgets, say that rented accommodation offers convenience and flexibility in terms of location, proximity to workplace and the luxury of staying in a bigger accommodation.

To advise our users, Ajit Kumar Chordia, MD, Olympia Group & President, CREDAI – Chennai, participated in GuruTalk, a live chat session by Magicbricks. The topic of discussion was ‘Should I buy or continue on rent?’

Commenting on the current situation of the real estate market, Chordia said, “At present, it is cheaper to buy as real estate prices are subdued and the home loan EMI could be equal or less than the rent amount.

Discussing the benefits of owning over renting a property, Chordia added, “If you buy, then over a period of time, you create an asset and there is scope for capital appreciation. The monthly home loan installment you pay is for the asset you purchase, while rent is an expense that you pay for a property without ownership.”

For those looking for rental returns Chordia said, “Commercial is always better to invest in for good rental returns. It is also preferable to lease to banks even though rentals could be low, as they are stable tenants. One can also look at renting to companies, reputed consultants and individuals.”

For those willing to sell, Chordia said, “The property prices are attractive today and hence, it is a good time to buy. It is a good idea to hold on to your existing property, which is fetching decent rental returns and you moving into a new home.”

In the current scenario, it is understandable that many of us contemplate between buying and renting a property. However, as the expert suggested, it is wise to remember two important things before deciding – It is a buyer’s market with multiple options at subdued prices and owning a property brings you stability in life.

 To clear your doubts relating to the real estate market and help you in making a confident decision, Magicbricks is constantly organising property discussions with various experts in the market on the topic – Buy today or wait? Click to know more -

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