Renting vs. Buying: Which is Better?

Buying a proper spacious brick-and-mortar home is the embodiment of every Indian’s dream. However, which option i.e. renting or buying would make more sense in financial terms? Should you pour all your savings and spend a significant part of your monthly income on EMI to own a piece of property? Or does it make more sense to pay a lower amount as rent every month up to a certain point? Or should you rent all the way?

In a nutshell, if you can comfortably afford the down payment, you are sure land prices are going to appreciate, and you are willing to live in the same house for 5-10 years, you should go for the buy option.

1. Monthly investment

The monthly rent you pay towards the house is an expense incurred in having a place to live in. Paying EMI towards your home loan, however, not only offers a roof over your head but also increases the proportional ownership of a home with each passing month.

Sudeshna Roy, a 29-year-old financial advisor and a proud home owner at HM Indigo believes that as long as you can take care of your expenses comfortably while paying the EMI, buying is the best option. In her own words, “I stayed in a rented 1BHK when I moved to Bangalore. While the house was pretty, there was something unsettling about it and along came with it so many expenses I did not expect to have. I coudn’t wait to buy a home of my own. Now, I am glad to know that the slightly higher amount I pay towards my home loan gives me a share of the beautiful 2BHK I own today.”

1. Permanent Housing

When you rent a home, you are often at the mercy of the landlord. You may have to relocate after completion of the time agreed upon. Owning a house does not pose any such issue. You need not relocate to a new place every now and then.

The benefit of permanent housing coupled with increase in disposable income, wider home-finance options, urge to hedge against future risk, and a change in attitude over time are a handful of reasons why 75% of millennials want to buy a home within the next 3 years, says a recent report by Financial Express.

1. Investment Opportunity

Buying a home comes with it financial benefits such as capital appreciation potential as well as tax benefits. Investing in real estate also carries with it a sense of investment achievement as compared to maybe, your mutual fund portfolio. As per a survey by KPMG, the real estate sector is expected to grow to $650 billion by the year 2025 and raise up to $850 billion by 2028, as per a report by Forbes India.

To make investing in a home more affordable, HM goes the extra mile to offer further reduced prices under the latest home-buying scheme. You can now move in a home at HM Indigo, located in the residential hub of JP Nagar by paying only Rs.10,000. You can enjoy the spaciousness and amenities it has to offer and not worry about paying EMIs for the next 10 months! Moreover, you would also save the money spent on paying rent. So, in total, you would earn Rs.40,000 – Rs.50,000 a month. After all, money saved is money earned!

So, what are you waiting for? Call us on 8880225555 today to book your dream home!