Renting offers flexibility, predictable monthly expenses, and someone to handle repairs. Homeownership brings intangible benefits, such as a sense of stability and pride of ownership, along with the tangible ones of tax deductions and equity.
The most important factors in deciding this is one's budget and the availability of ready finance. Remember, interest rates are high and so are rentals in some markets.
Buying
An apartment worth Rs. 2 crore in a Mumbai suburb with a rental yield of about 2 percent per annum would cost Rs 4 lakh per year, or over Rs. 33,300 a month , in rent.
Renting
Renting the same apartment for years may resuli in paying out Rs 2 crore over 50 years intead of shelling out the entire in one go.
Burden of home loans
Experts say most homebuyers opt for home loans, which significantly adds to the cost of ownership and if one were to account for the interest cost as part of overall home ownership cost, the period would rise to 30-35 years of rental outgo.
Should you rent or buy?
You May want to consider buying a property if you are assured of regular cash flow, and immediate funds to be paid as downpayment.
Rentals add the advantages of mobility. You can move homes across cities at the drop of a hat.
THINGS TO KEEP IN MIND
If You have decided to invest in a property, estimates the total cost of ownership including parking charges, stamp duty, registration charges, and interiors. Take into account the monthly maintenance charges that you may have to pay.