Tips and Pointers to consider while making property related decisions
Reading Time: 5 Minutes
Reading Outcome: At the end of this article, you will be able to assess and analyze the pros, cons, merits, and demerits of renting/buying homes.
There is always one impending question which often occupies most of our thinking time zone of ours. Should I rent a home? or Should I buy a home? Have you ever wondered why this question keeps occurring in your mind?
Well, the answer is, subconsciously or deep within our hearts we all start to think about our future, investment, and returns which can go a long way in determining our lifestyle and dwelling outlook.
If you are feeling pressurized by the above questions or by the above situations, then this is your perfect article for a hassle-free decision-making process!
Ready to uncover the myths associated with property related decision-making process? Here, we go!
1. Your Future:
To start with, while making property related decisions, (whether it is renting or buying), you must always consider your a future in a vivid and diverse manner. When we mean future, you should be focusing on the following aspects while making crucial decisions.
• Career: As you keep progressing your work life; similarly your lifestyle changes will get modified according to your needs and demands. Normally, a rental home solution will never give you that flexibility, but with a home of your choice you will not only be able to make changes accordingly but will also be able to see home and self-progression steadily.
• Family: Initially or at the start of your career, a rented home may be the best fit solution! But as your family starts growing, pre-owned homes will outgrow. Besides that, the need for creating an asset for your family will start pressuring you from all angles! (Rental Homes will never satisfy the above need, so go in for own homes that will serve you at all points of time).
Pro Tip: Buying homes in recent times is no longer a challenge! Especially with PMAY scheme and other EMI options, you can own a home of your choice in no time. To know more about the PMAY Scheme visit:
2. Spending v/s Investment:
Whether you are paying rents or EMI’s, at the end of the day, it is your hard earned money which is getting converted as payments, so be wary of what and how you are spending. Besides that, you should also be focusing on the following for enhanced decision making.
• Rent v/s EMI: Though paying rents might seem like an easy solution, in the long run, it will end up becoming dead investment! Consider that you are in fact paying for the EMI of the owner of the property you are renting. Why not pay your own EMI instead of paying rent?
• Investment/ Spend: Money always loses value as time passes by. Investing in a property in a good, growth-oriented location ensures that the value of the property increases and fetches monetary and security returns in the long run. This can be in addition to other investment avenues like mutual funds, stock& bonds, SIPs, Life Insurance etc. By paying rents you will not only be able to achieve the above but end up spending more without any returns.
Pro Tip: It’s never late or too early to start investing in a property! Some of the most successful business-men like Warren Buffet of the world started investing in their teens.
3. The Way of Living:
One major factor, you need to consider while opting for own homes or rental homes is the extent to which, you can live on your own terms and needs. While making property decisions, always consider the following:
• Freedom: When you have a home for yourself, automatically the sense of belongingness and identity sets in. Besides that, you also have the autonomy to modify or beautify your homes as per your needs or trends. But in rental homes, the above element is absolutely absent, thereby leaving you in a state of helplessness at various points of time.
• Amenities: When you buy a home of your choice, you have the freedom and choice to your apartment or villa or any living set-up in accordance with the way, you want. Besides that, you also have the choice to make it flexible. But in a rental home, the above phenomenon is absolutely absent and will also leave you in a cramped situation with limited access to facilities which you need at times.
Pro Tip: Choose wisely in a gated community with lots of practical amenities that provides peace, serenity and good health.
4. The Benefits:
Another factor, which you need to consider, is the benefit that you will be getting from rental solutions or property buying is the overall benefit that you will be enjoying from making such decisions.
• Appreciation Value: Any property you buy comes with two major benefits. 1. The Land Value. 2. The Location Value. It is to be noted that metropolitan cities give you the vantage of choosing prime locations that give you the benefit of adding value and meaning to your investment. But in rented homes, you not only end up paying rents at higher rates but will also be forced to forgo the benefits of own home just like that.
• Future Needs: Owing a home is like having a life-boat at crucial/critical points of time. Besides that, they could be used in various forms. (You can convert them into rental solutions, SIP’s, or as a ready-made investment whenever you need.) In rental solutions, the above phenomena are not only absent but also creates a vicious circle of paying one’s rent when we can do the same for ourselves.
Pro Tip: Buy homes or properties that will have more resale value and property value in the long-run.
5. Other Factors to Consider:
Apart from the above factors discussed, elements like Liquidity, Appreciation Value, Pride, Tax Benefits and Security to need an immense amount of consideration before you finalize your mode of living and dwelling.
• Liquidity: Any good investment is only considered beneficial when it comes to your aid in times of need. The golden rule is to ensure that it continues to grow without much ado as well as provide liquidity for planned and unplanned needs. In rental solutions, the above situation is absolutely zero and can leave you crippled especially at times of need.
• Appreciation: Besides the fact of living in your own domicile, a good home investment must appreciate in Capital terms along with the growth in the overall market terms. In a country like India where population growth patterns dictate constant surge in demand for especially in urban centers like Chennai, Hyderabad, Bangalore, the demand for resale of homes is always present. Are this phenomena present in rental solution?
• Pride: Imagine coming back to your very own home after a tiring day. Doesn’t the very feel of stepping into your home excite you? Well, that’s the magic of having a home for our own selves. However, in the case of rental solutions, though you might come back to rest and relax the feeling of living in some one’s house can haunt you!
• Tax Benefits: Whether you are part of a salaried or business class, there are a variety of benefits that you could derive from owning a home. Should you be taking a loan for part or the entire value of the property, your benefits increase in a different category. What benefits do you get from paying home rents?
• Security: Life is not going to be the same as you start progressing personally and professionally. There will be events and situations where you will get married and start having a family and the need for more privacy can be felt. Besides that having a home that defines your family will not only add value to your status but will also act as a form of security at any point in time.
Unlike any other life decisions, property investment choices must be made accordingly. If not, it can cost you from all ends! Whether it is buying a home or going in for rental solution if the above perspectives are taken into account, it can benefit you immensely and can also help you save tons and tons of money, thereby adding value to your investment and hard- earned money.
After all ‘Home is where your heart is’!
The next time, if you are confused about making such critical decisions, consider these points for a clarified outcome.