Should You Buy Property or Rent It?
The basic necessity of humans is having a roof over their head, clothes to wear, decent education and two square meals. Apart from this, we have become accustomed to a lot of things which come under luxuries. However, since we are so used to them, we find it difficult to manage without them. More often than not, people leave their hometowns in the hope of quality education and better job options. In many such instances, the immigrants opt to settle in big cities like Delhi or Mumbai, thereby increasing the population. To cater to the increased influx of people, these cities have expanded into neighboring regions, leading to the formation of the national capital region (NCR) and Navi Mumbai respectively. However, one pressing concern always remains, should you buy the property or rent it?
The expansion of Delhi to include Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad, etc. has resulted in many options for property dealers. However, this has also increased the commuting time, since a majority of the offices are located in Gurgaon and commuting from Delhi can be a real pain in peak traffic hours. The construction of various expressways including Dwarka Expressway is meant to reduce the congestion. This can be beneficial for people who have to commute long distance, from Delhi to Gurgaon on a daily basis for their jobs. In such a scenario, won’t it make sense to rent living space nearby than buying one?
Advantages of Renting Accommodation
People in private jobs often keep changing them for better growth prospects. With every change in job, there is often a change in a location too. Moreover many times, a promotion or job switch is often accompanied by moving to a different city. If you have your own house, you have to worry about what to do about it. Finding a suitable tenant to take care of your home while you reside in another city is a huge task. Though there are a number of property dealers who can arrange the same for you, yet it is a time taking process. Simultaneously you also have to find suitable rented accommodation for yourself in another sector of the same city or another city.
While having your own property is an asset, the appreciation of it is relatively slower compared to other options like stocks & bonds. If you have rented accommodation, any change in the job is not going to affect you much. You are not responsible for any hassles involved with owning property including, property tax, lease agreement, etc. Since most people do not have the kind of money required to buy property, many of them take loans which are paid through EMIs across a long time frame. The money given to banks as EMIs can be used to pay rent as well as investment.
