People often dispute that a rental home costs less than possessing a home when living on rent versus staying in one’s house. Those who like possessing a house talk about the liberty that it offers. While possessing a home is usually the dream of every Indian, sky-rocketing property costs recently have driven people to choose renting instead of buying.
Possessing a house might seem to secure a future not for you but for your family, but renting is much simpler and offers you ample flexibility. If you are in the initial stages of your career and working in cities like Mumbai or Hyderabad, renting may be much simpler. If you are unsure where you would land up in pursuing your career, buying a home may not be a wise decision. Apart from that you always have the flexibility to transform to a better and bigger house as and when necessary. It becomes much simpler to move to other cities or shift to a smaller house when the children get older and shift to other cities or homes. Although renting may be beneficial in the initial stages of one’s career, it might not prove to be a great and lucrative solution in the long run.
Benefits of staying in rented flats in Mumbai
Buying a house is not always feasible, and renting frequently makes more economic sense. While most students and working professionals prefer renting because of lower payouts, there are several other benefits.
Being a homeowner is a lasting goal for many. Choosing a rental house in Hyderabad is often perceived as a temporary solution, and people think about owning a house as their primary objective. Both buying and renting have their financial benefits, but renting does appear to hold an edge. Following are some of the reasons why being a tenant can be a better financial deal than being a property owner –
- High mobility: Renting a property enables more flexibility. This is perfect for individuals who can face abrupt changes such as job relocation. Renting necessitates no lasting assurance from a tenant and is the most excellent option if you do not have the aim to stay in one place for long. It is simple to vacate a rented house by offering a month’s notice.
- Low maintenance prices: A specific benefit renters have over homeowners is that they typically do not need to pay repair bills or maintenance costs. If there is a breakdown or a malfunction in the rented house, it is the homeowner’s responsibility to get it fixed. While if you buy a property, aside from repaying the home loan, you are also accountable for several other expenses such as the maintenance and upkeep, society bills payment, renovation costs, and property tax.
- Fixed rent: Rental fees are fixed for the rent agreement tenure. While landlords can raise the rental fee with a notice after eleven months, the tenant can prepare financial plan, as they know the rental fee they need to pay. In the same way, property tax and the loans can also vary, landing you in a lucrative position. After spending the fixed rent, a renter may enjoy the additional money, which they can invest somewhere else.
- Income tax advantage: You can ask for a house rent allowance if you are staying on rent. The house rent allowance is forty percent of the basic salary in tier-II and tier-III cities and 50 % of the basic pay in metro cities. In a self-occupied property devoid of a home loan, you will not get any tax, and thus the tax outflow will be high. Moreover, interest on home loans also adds to income tax advantages.
- Living with friends: Another advantage of renting is that it offers opportunities to stay with friends. Living with a group of friends is preferred by students but young experts who share rental properties to reduce expenses and increase social opportunities.
- No significant financial investment: unlike buying a property, renting an apartment requires any considerable financial savings. Though renting a place includes offering the property owner a security deposit, this investment is considerably lower than what would be necessary to buy a house. A large down payment is required when buying a home with a home loan.
- Amenity access: Another financial benefit that rented flats in Mumbai carries is the access to facilities that can or else be a vast expense. Luxuries like a gym, pool, or sports courts are usually available in posh residential societies. If you are staying in such an apartment, you do not need to pay any extra charges for using these amenities.
- Flexibility to cut back: By choosing a rental house in Hyderabad or any other city, people can downgrade into an inexpensive living space if they find the present costs too high. Such an event can only occur at the end of their rent. If you are a proprietor, it is much harder to break free of an expensive house due to the expenses involved with selling and buying a home.
Thus, there are numerous benefits of renting a rental place. By renting a place, you can have a flexible advance in life and share expenses by taking roommates if you feel that you are finding it hard to handle a rented unit by yourself financially. However, this is a subjective decision, and you should take time to speak with family members and property brokers before finalizing this.