Rent or buy – this debate has existed in people’s minds for ages. Is buying a car better than renting it? Should I rent a house or buy it? This sets wings fluttering when it stated that renting a home in India makes more sense. Numerous investment-savvy communities discussed the topic.
On paper, QZ’s argument is valid. But the reality is different. In the real world, we affect people and policies, both of which may change over time – something that numbers cannot account for. This post discusses the pros and cons of renting versus owning a home, furniture, and a car.
Renting versus buying a home
‘Home’ here means a place where you stay, not for rent or investment. According to QZ (and many of us agreed with the view), renting a ₹1.5 crore apartment in Mumbai is cheaper than buying it for several reasons.
First, the monthly rent comes to around ₹20,000. Over a year, ₹2.4 lakhs is less expensive than the EMI. Second, the effort of paying an EMI to the bank is avoided. Third, you don’t get to worry about delayed possession.
Now let’s talk about buying a home. Most people want a family in their name today. The essential factor in our lives (makaan) belongs to us. Plus, you receive tax benefits, albeit you rent the property out.
However, keep one thing in mind: search for completed projects. Builders offer lucrative 20:80 schemes (pay 20% now and 80% on completing the project). But the cash is stuck until the project is completed. Often, builders divert this fund to other delayed projects, which means that your dream home is on the road to being delayed too. Plus, if you’re taking a loan to pay off this 20 per cent, you pay EMIs and interest thereon. So look only for completed projects.
Renting versus buying furniture
The most significant advantage of renting furniture is that you can get a fully furnished apartment within two days. You can get the right furniture for your home even if you have less money upfront because the cost of renting that furniture is lesser than its outright price. This is also useful if you won’t reside in a house for long and can move soon. If you are in a home for a year before proceeding to your own or a rented house before you have to move to another location, this is a viable option. If you wish to change your home décor once every few years, this works to be a less expensive option.
But if people do not stay for the short term at a goal, they prefer buying furniture. The logic drives some that if the table were right, it wouldn’t be rented. Just like we prefer owning our home, we prefer keeping furniture. “Given a choice, would you eat in a plate exclusively yours, or one which others have eaten in?” my friend asked. “Similarly, i’d rather own my furniture rather than sleep on a bed or sit on a sofa employed by others.” If you’ve to stay within the rented property, you’ll search for a semi-furnished home or fully furnished home. The rent might add up to the same cost as the total of an unfurnished residence and rented furniture.
Whether you opt to have furniture or rent it, check out your convenience, not at what others think.
Conclusion:- Renting over buying is a good option. In this case, MultiLiving may help you out while choosing your rental flats in India!
