The biggest question: Buying or Renting?

There is one big question and a challenge on every home-buyer’s mind – Is purchasing a wiser decision than renting? With 2018 coming to an end, we see that the real estate sector has witnessed positive changes with execution in RERA bill, ongoing Union Budget declaration and more. Let’s analyze the pros of renting and buying to make a rational decision.

Why buy?

Buying a house is an emotional decision and yet a matter of pride and prestige. Specially because it is the most important and big investment decision and a feeling of ownership for every family. This not only benefits in tax saving by choosing a home loan but also gets you a chance to earn rental as a source of income.

What to consider while buying?

Choosing a trusted developer and/or real estate professional to help you select the right home for you is of utmost importance. This is the greatest financial investment and hence location, pricing, connectivity, budget, documentation are the dominant determinants before taking a call. Also, as a thumb rule, ensure the total principal amount does not surpass half of your aggregate resources, and the EMI does not cross one third of your monthly income.

Why rent?

Renting a home helps you stay in the heart of the city, be debt-free and marks to be a cost-effective solution for time-being. While buying a house is inevitable, renting becomes a stop-hole choice for the home hunters when they are in middle of a family situation where the investing criteria is not fixated.

What to consider while renting

It is imperative to consider the key factors that impact your choice of settling on leased convenience. One of the essential elements is the rental agreement to be looked into. The time period, installments and extra expenses mark to be the most important clauses for verifying along with the security deposit clause in the rental agreement.

Documentation:

There are numerous other basic documents to consider before making the financial arrangement apart from the rental agreement:

-> Title documents
-> Electricity bills
-> Share certificates
-> No-objection certificate

The response to the overall inquisitive question of buying v/s renting is a combination of numerous components from the financial circumstances to individual family preferences. At the house of TREC, we genuinely believe that Buyer is the King and we sprint the extra mile and go beyond our call of duty to help them build a kingdom they dream of. However, one should ideally keep in mind their lifestyle, infrastructural development and connectivity from the city area. TREC Consultants can guide you right as per your personal preferences and needs while checking all the boxes for both first time home buyers and experienced investors.