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Buying or Renting home: People are often entangled in the question whether it is wise to buy a house or take it on rent. Almost all of us must be thinking about investing our money in buying a house or staying on rent and investing that money somewhere else. Today we will try to reduce your dilemma to some extent through this news.
Increasing demand for residential property
In some recent reports, it has been seen that the desire of people to buy their own house has increased. The increase in fares can be held responsible for this. Last year, a data from July to September revealed that the demand for residential property has increased in 13 big cities of the country. This shows an increase of 7 percent year-on-year. Whereas there has been an increase of more than 3.1 percent year-on-year in taking houses on rent.
People are showing less interest in taking house on rent
In a city like Bengaluru, the demand for residential property is increasing at the rate of 18.2 percent every quarter, while the demand for renting a house has seen a decline of 2.8 percent. Similar is the situation in cities like Delhi and Mumbai, where there is a competition among people to buy their own house. In comparison, people are no longer showing that much interest in taking houses on rent. Now the question comes that what is wisdom?
Keep this in mind while buying a house
Talking to Business Today, Ashish Padiyar, Managing Partner, Belvedere Associates LLP, said, there is no definite answer to whether it is better to take a house on rent or buy it. However, after analyzing the trends around the world and the market here, it is found that the demand for buying houses has increased among the people. Since rents are increasing, people are showing more interest in owning a house. Most of the first time home buyers take help of home loan. Now the thing to be seen is that the rental income of the best properties in the country is around 3-3.5 percent, while the interest on home loan is 8.25-50 percent. In such a situation, there is no point in buying a house by paying high interest.
This calculation is necessary before taking loan
It is not advisable to take a big loan to buy a house because the amount you pay as monthly rent is only a part of the home loan EMI. Is it better to buy a house or rent it? For this, you have to see how much rent you have to pay and how much monthly EMI you have to pay, if there is a huge difference between the two, then it makes sense to take a house on rent. While buying a house, try to keep the loan amount to a minimum because if the interest on the loan increases, the EMI will increase and in many years it will exceed the value of your property.
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