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Renting Vs. Buying Real Estate Property

The universal presumption concern to buying or renting of real estate property is that owning your home is cheaper then renting. In fact depends on a number of factors:

  • Not dependent on landlord to maintain property while less mobility than renting.
  • Real estate industry market conditions and your own needs.
  • How long are you planning to live in particular area?
  • Buying a real estate property from real estate development company, is certainly a smart decision than renting a house. Of course, easier said than done, especially in today’s real estate industry scenario where property prices and home loan interest rates are going out of the reach.

    Buying a House - Residential Property

    Buying a lowrise luxurious apartment increases your assets and comes with a guarantee to appreciate over a period of time. Also, it gives you a sense of ownership as well as freedom from paying monthly rentals which hardly form the pleasure cup of any tenant. Buying a luxurious apartment builds equity with responsible for maintenance.

    With your own 3 BHK luxurious apartments, you have the full liberty to decorate it the way you like without taking any prior permission. But, the responsibility of its maintenance completely falls with you. Moreover, sense of community, stability and security with responsible for property taxes. You will not be not dependent on landlord to maintain property while less mobility than renting.

    You have to think a many times before relocating to another place. Then, there are the property taxes waiting for you. In addition to these outstanding expenditures, there is stamp duty, broker’s fee, insurance costs, society charges, registration fees etc.

    Buying 3 BHK luxurious apartments with the help of a home loan is not as easy as it looks to be. Banks and financial institutions never finance your entire home loan. They may take care of 80-90 percent of your home loan requirement and the remaining amount is to be paid by you.

    Renting a House - Residential Property

    Renting a house provides you with greater freedom and flexibility of choices, a factor which usually do not come with buying a house. Here, you are free from sharing any kind of apartment maintenance as this is primarily your landlord’s responsibility. However, the landlord can send you a notice to vacate the place at any time on violation of any term or condition mentioned in the home rent agreement or increases the rent whenever he or she wants.

    Needless to mention are the monthly rental payment which appears no better than the Damocles’ sword hanging over the neck at every month’s end. Little or no responsibility for maintenance where no tax benefits are possible. No control over rent increases, it increases as per owner’s priority. In renting real estate property, it may be cheaper to rent then it is to own. Because rising real estate taxes and other carrying costs of insurance, maintenance etc all should have an impact for the owner. As a renter, the owner has to try to cover these fixed costs as well as their mortgage. It never hurts to offer less then the asking price whether you rent or buy unless the real estate development market conditions are real hot.



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