Renting vs Buying: How to Decide What Living Option Suits You Best?

By Lodha

Considering today’s real estate market in India, the one question that is on everyone’s mind is whether to rent or buy. When you first step into adulthood, renting seems like a more economical option. Over time, you are expected to save up and move into a house of your own. However, times have changed. Today, you will find many advocates encouraging potential homebuyers to stick to renting. But what about steep rents and shorter lease periods? After all, what is the better option, and how do you decide what works best for you? If you have found yourself stuck between renting a property or becoming a homeowner, here is a comparison between the two options to help you decide.

Let’s Talk About Renting: Pros and Cons

If you are fresh out of college or embarking on your first job, renting is the most pocket-friendly option. However, how does renting a house pan out in the long run? Here is a list of pros and cons to give you a full picture:

Pros:

• Affordable: If you choose the right location, you may have to shell out very little money each month as rent. When compared to purchasing a home, renting seems like a more affordable option, especially when you do not have a nest egg to invest in property.
• Flexible: Say you want to live close to your college or workplace. You can easily find an apartment to rent in close proximity. Even if you switch jobs or move to another city, you can look for an alternative home to rent. Apart from lock-in periods, you can terminate your lease very easily and move as and when needed.
• Hassle-free: With great power comes great responsibility, and the same goes for home ownership. As a homeowner, you must pay maintenance charges, taxes, and other fees. When you rent a home, you do not have to take on the financial burden of such expenses and only pay rent.

Cons:

• Frequent Moves: Unfortunately, living on rent comes with having to deal with leases and their durations. As more and more landlords opt for shorter leases, renters have to be prepared to move every couple of years. From packing to find another apartment, renting can mean uprooting your life frequently.
• Paying Rent: Although it may seem like the more financially feasible option when you are younger, over time, paying rent adds up. As your family and needs grow, the rent for suitable homes also increases. Ultimately, all the money you pay as rent adds up to a substantial amount that could be used elsewhere.
• No Ownership: Renting is simply the price you pay to avail of temporary shelter. Paying rent does not grant you ownership of any property. If you choose to stay on rent indefinitely, you do so without having any property in your name to serve as a safety net.

Let’s Talk About Buying: Pros and Cons

As an investor buying a house, it is crucial you know what you are getting into and if investing in property is the right move for you. Here are the pros and cons of buying property to help you decide:

Cons:

• Capital-Intensive: Buying a home is not a walk in the park; it takes a lot of time, energy, and money. If you are a young professional, it might be difficult to have a substantial corpus you can use to buy a home. If you are working with very limited funds, renting might be the better option.
• Charges and Costs: As a homeowner, you must fulfil certain duties and responsibilities. You must pay maintenance charges to keep the housing society where you live up to date. You also have to pay taxes associated with owning a home, such as property tax, stamp duty, registration, etc.
• Commitment: When you buy a home, you are making a long-term commitment to a space. Keeping that in mind, you have to spend considerable time and effort to find a suitable space and be ready to live there for a while. Selling a home and moving is more difficult when compared to terminating a lease.

Pros:

• Ownership: When you rent a space, you make monthly payments simply in exchange for shelter. However, when you buy a home, even after taking out a home loan, the money you pay allows you to own property. Each instalment of a home loan or down payment allows you to own more of a right in the property.
• Stability: Renting a home may seem convenient; however, you may have to move at short notice if your landlord demands it. Over the long run, renters have to move many houses and incur the expenses of shifting homes from one place to another. Owning a home allows you to put down roots and settle somewhere without having to uproot your life every couple of years.
• Security: As the rent in major cities increases, more and more people are left experiencing housing insecurity. If rent becomes unaffordable, you may have to move away from where you are currently residing and compromise with your living space. Owning a home lets you sleep with peace of mind. You can rest assured that no matter what, you have a roof over your head.

At the end of the day, renting and buying property come with their own perks and pitfalls. To make the best choice for yourself, take stock of your financial standing, earnings, savings, and what is most important to you now. If you are looking for affordable and flexible housing options, renting may be the way to go. However, if you are ready to invest in a home and enjoy peace of mind, look no further than Lodha. Lodha is one of India’s top real estate and construction companies, and we have built premium projects in major cities like Mumbai, Pune, Thane, Bengaluru, and more. Our developments, featuring modern construction quality and work by the top designers in India, cater to our diverse clientele, including first-time homebuyers.

Build a beautiful life and live in your dream home with Lodha.