The trend of living in a rented house has gained a lot of popularity in recent days, with people preferring a place to live near their workplace or in a good locality. Living in a rented house has innumerable advantages; such as low cost, less or no responsibility, savings for future investments etc. Although the pros of a rented house cannot be ignored easily, the feeling of prestige of living in a house on your name can also not be disregarded.
The buying vs. renting decision is one of the most crucial ones in a property investment commitment. The decision needs to be backed up by various factors such as price consideration, future value of appreciation, locality and proximity to the workplace and other basic facilities. The cost vs. benefit factors is the prime reason that drives rent versus buying decision of the investor, in favor of rent. The pros of living in your own house are stability, security, freedom etc. which still hold more weight age when compared to living in someone else’s house.
The decision becomes even more difficult when the city in question is like Bangalore, a city known to offer a plethora of choices for both looking to settle in the city and the ones who have come here on contract, for short term. Let us look at the pros of both renting and buying a house in the backdrop of Bangalore city.
Pros of renting a house rather than buying one
The biggest advantage of opting for an apartment on rent in Bangalore is the hefty amount of savings that you can do, however in addition to this, there are many other benefits too, they are:
- Low Monthly Cost
Renting leads to a much lower monthly spending than compared to buying a house. When you mix property tax, credit, and the home insurance; the rented houses are much cheaper when compared to a low down payment, which also includes a private insurance. Even when the property prices are less, the rent value is fixed, which a benefit is for the landlords.
- Low Expense on Ownership
Renting adds on to your money in many ways. Bought homes always price more when maintenance comes into the picture.
In case of rented apartments, the landlords are liable to pay for correcting a defective roof and remove or change some non-working appliances to keep their rental houses in demand. But, in case you are the owner of a house, these repairs will happen from your pockets, which subsequently add up to thousands of rupees in a year.
- Tax Benefits
A number of companies usually refund the rent amount as a part of the monthly salary. The amount is also a beneficial mode for saving the taxes legally.
Pros of buying a house rather than renting one
The biggest pro of buying a house is the security you derive from it. You have no reason to worry about the contract coming to an end or monthly rents. There are many other reasons why buying a house is profitable, some of them are mentioned below:
- Stability
When you live in your house, the level of security in terms of having a house to live in at all times is higher than when you live on rent. It has become very important to have a house of your own at this time of economic instability.
- Freedom to innovate
When you live in your house, the freedom to change the interiors, color of the room etc. is in your control. You don’t have to seek permission every time you want to hang a picture on the wall.
- Choice of maintenance
You live in a house in which one room is full of sewage, but you are comfortable with it. If you live on rent, you will have to pay a fixed amount under maintenance cost, even when you like the little patch in the room. However, when you live in your own house, you can delay the maintenance as you see fit.
It is on you to decide whether to look for an apartment on rent in Bangalore or a house to buy in the IT city, or any other city for that matter. But be sure you have a comparative study ready and know what you are doing.