When is it Wise to Rent a House and When to Buy a House?
May 17, 2017 Home Trading Steps
Buying a house is the great Indian dream. Often people get confused, when to buy the house or when to rent it. The decision for renting or buying is extremely important. One wrong move and it can have an adverse effect on personal good being and financial front. Some people buy a property under the peer pressure of family and friends. But that shouldn’t be the reason to buy the house. Buying a property should be an independent and well thought upon decision.
So coming back to the question, when to buy a house and when to rent it?
When to rent it:
Buying a property is an expensive process. Not only it involves a huge monetary input to buy the property but also for the registration, brokerage etc.
Banks and housing finance companies give home loan up to 80 percent of the price of the property. The rest 20 percent has to be shelled out by the buyers from their own pocket. Until the buyer has efficiently saved enough money to pay the margin money and for other services like registration, brokerage etc, it is better to rent a house.
If the buyer is an employee and has to move regularly from one city to another because of work, it is better to rent a house till they have decided on the city they will settle in future. Some of the real estate transactions are non refundable like brokerage, stamp duty, so taking a wise decision is a must.
The size of the family also affects the decision of buying or renting. If the buyer is unsure of the future needs, it is better to rent a property till they have set a proper goal.
When to buy it:
Buying a property is a huge decision. After months of searching and researching for the property that matches buyer’s needs and requirement, the feeling of buying it is unmatched. But before buying the house take in consideration of your future needs and requirements. Your family will increase and so will your family’s needs and demands. It is better to keep it in mind while investing. Buy the property in the location that can serve your future needs. Locality, the distance of hospitals, commute place, daily needs, all should be taken into account before investing in the location.
While doing a cost-benefit analysis, keep in mind that the properties appreciate on an average of 9 percent over the years. Owning a property should come as a mental and psychological satisfaction to the buyer and not a burden.
So coming back to the question, when to buy a house and when to rent it?
When to rent it:
Buying a property is an expensive process. Not only it involves a huge monetary input to buy the property but also for the registration, brokerage etc.
Banks and housing finance companies give home loan up to 80 percent of the price of the property. The rest 20 percent has to be shelled out by the buyers from their own pocket. Until the buyer has efficiently saved enough money to pay the margin money and for other services like registration, brokerage etc, it is better to rent a house.
If the buyer is an employee and has to move regularly from one city to another because of work, it is better to rent a house till they have decided on the city they will settle in future. Some of the real estate transactions are non refundable like brokerage, stamp duty, so taking a wise decision is a must.
The size of the family also affects the decision of buying or renting. If the buyer is unsure of the future needs, it is better to rent a property till they have set a proper goal.
When to buy it:
Buying a property is a huge decision. After months of searching and researching for the property that matches buyer’s needs and requirement, the feeling of buying it is unmatched. But before buying the house take in consideration of your future needs and requirements. Your family will increase and so will your family’s needs and demands. It is better to keep it in mind while investing. Buy the property in the location that can serve your future needs. Locality, the distance of hospitals, commute place, daily needs, all should be taken into account before investing in the location.
While doing a cost-benefit analysis, keep in mind that the properties appreciate on an average of 9 percent over the years. Owning a property should come as a mental and psychological satisfaction to the buyer and not a burden.
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