Observation about renting vs buying.
Sure renting will be cheaper initially, but i feel like if you can afford to buy then you should buy a house.
Rent will increase every year and EMI on loan will not. Moreover let's say if i have an EMI of 1LPM, after 5-6 yrs also it will be 1LPM. And if my rent is 40K pm, after 5-6 yrs it will be 70-80k probably.
In long run i feel like buying might be a better option.
What are your thoughts?
Renting gives you flexibility, buying removes that flexibility. Even if you take an example of Bangalore for instance, lets say you buy something which is close to where you work now. Couple of years down the line, you might switch and go to a different city or country. It might get difficult to maintain the flat. Even if you switch and say your new office is 20-25km. Its not feasible at all to travel so much in Bangalore traffic (and with most offices starting WFO 5 days, it will really be a hassle). In these aspects renting is better. But these are only applicable if you already own a home (atleast in your hometown). Buying a second home doesn't make that much sense.
According to me you should have a bucket on name of house to put money in but keep it in equity and it should appreciate faster than your fav house society and plus rental outflow
Wrong, emi can also increase (or tenure will increase), interest rates keep fluctuating. Personally I don’t see any value in buying apartments, but can surly buy land or built house, that too max at 10 yrs emi.
My research is see it as bucket, assuming Vasundhra Enclave is where i want to buy flat, it is 1.5 CR, and rent is 20,000 INR. So if I have that money i will invest it in a XYZ asset to grow. So according to my projection after ten years your XYZ asset should appreciate faster than that flat + Rental outflow,
Now for piece of mind i know if i have money safely parked on name of house i am tension free.
Pro of Renting - 1. Lower Financial risk attached 2. Flexibility - Easy out Easy in - If you don't like the place, environment, neighbours afterwards you can change it. You want it near your office? you can move easily you saw some seepage in walls around monsoon or other deformity no tension it isn't yours.
Pro of buying
- You cannot be asked to vacate at any time
- Customisation and you are decision maker
- Your Shifting costs saves, and so is your electric appliance's like Refrigerator and AC health.
- If your flat appreciate faster than MF, Great Cheers
See what works for you for me i have a one bhk of my own (Parent's actually) so I will in future instead of buying bigger will put it on rent and get a bigger for more rent, and will build equity net-worth in MF and Bonds etc.
these are lame advise to support your own decisions . 1 lpm is crazy amount and whats the value of time you are lossing to invest that for those 7 yrs .
