Renting vs. owning a home is an exciting topic for a blog about home loans and real estate. I woke up this morning with the idea of writing something completely different. For the sake of my readers, I always attempt to provide an impartial viewpoint, which means presenting all sides of the subject. You may have come across folks who prefer renting because of the rising cost of owning a home. My piece, Endless Wait for Property Prices to Fall, emphasized this point. Staying in a rented apartment is considered socially unacceptable in India. It has a connection to the state of the economy. On the internet, you may discover a wealth of information on whether or not you should rent or purchase a home. This is a hypothetical question, and there is no correct or incorrect response. If you don’t anticipate your house to appreciate at a rate of double digits, I think it makes more sense to live in a rental property.
The advantages of 1 bhk for rent:
- There is a lot of mobility when it comes to employment.
People were not mobile prior to economic liberalization because occupations were not movable. For the last 50 years, my parents have lived in the same neighbourhood. Purchasing a home does not make sense if your employment is movable or transferrable in today’s market. I’d want to use the military as an example. I noticed that much only purchase a home towards the conclusion of their career or when they retire since their employment requires them to travel often. You don’t have to worry about maintaining a residence in a new place, so you may enjoy yourself while renting a room for only one month’s notice.
- There are a lot of opportunities for advancement in the workplace.
In my experience, those who own their homes and do not rent tend to lose out on more professional chances. Ownership of a home is a source of an emotional connection for many people. It is also more sophisticated and tailored to the simple wants and desires of the household. Finally, individuals feel more safe and comfortable in their own home than they do in a rented one. In a nutshell, we adapt to living in our own homes. We build a comfort zone, and as a result, we tend to overlook or miss out on job prospects. Although there are many straightforward explanations for missing these chances, some examples include the children’s school, friends and family who live in the same city, etc.
- Maintaining a home includes.
House maintenance costs aren’t included in the price of the property, which chips away at the property’s return. Taxes, maintenance fees and labour charges are examples of ongoing and regular expenses. Painting and other home improvements are also examples of continuing and everyday expenses. You don’t have to be concerned about these expenses if you’re renting. It’s a huge hassle to get this task done since you can’t find enough workers.
- It’s essential to be able to change your financial situation at any time.
While renting, you have a lot of leeway in terms of how much money you spend on rent. If your rent is too costly, you may want to look for a place with a cheaper rate. Your existing financial situation will dictate how much money you can spend. If, for example, the wife of a friend of mine decided to take a professional sabbatical, they moved into an apartment with a rent of Rs 20,000 per month. They were previously renting a room for Rs 40,000 a month, but that has now been reduced to Rs 25,000. With a mortgage, you can’t take advantage of this freedom. Home Loan EMIs are set until you pay them off in full. In the event of financial uncertainties or unexpected events, your life might be thrown into disarray.
- Houses aren’t simple to sell.
Selling a home might take anything from nine months to a year or more. Selling a house is more complex than it first looks. You won’t have to deal with this hassle if you’re renting. If you decide to leave, you need to give your landlord a month’s notice, and you’re free to go. The present inventory levels in all metros and small metros are 3-4 years, which means that supply is outpacing demand, making the job of selling a home a time-consuming and tiresome one.
- It’s difficult to locate decent renters because of the high opportunity cost.
If you live in a flat, your monthly expenses, such as utility bills and maintenance fees, are predetermined. Another problem is finding renters who are decent tenants. There is an opportunity cost of the monthly rent if the apartment is unoccupied for even 1-2 months.
- Limitations don’t have to IMPACT your life.
If you’re renting an apartment and having trouble with things like inconsistent water supply or excessive noise, you may want to consider moving. You may leave if this is the case. Assuming you reside in the same home, you’ll have to deal with these issues and constraints.
These were some fantastic advantages of 1 bhk rental.
