Going for Rent and for your Own house depends on may things 1) If both are earning and if the job is not transferrable -Owning would be really good 2) If Single person is earning and if he has kids and if he is in a city like bangalore -then rent and owning -both are impossible -as rent is not affordable and buying is totally ruled out-In such circumstances Lease is good for period of 3 years or 5 years -Nobody leases out property as there is no recurring income ,BUT if the Owner is a business man then certainly he may lease the house as he is getting a big fat amount as lease amount which he can put into his business and earn more than rent -element of risk is there for both the parties . 3) Any time owning a house is far better than any other option -but you should be blessed with that kind of money -which is possible only if you are Techie or if your Abroad.
to my opinion if you have a job which requires regular travels or working in different cities and you cannot decide where to buy a house to my opinion best is buy a house in your home town...rent the house and use it to pay your rent in the place you are living in or if you have taken a loan repaying it...still it works out....because if you are using the money to pay your bank loan maybe in the short run it doesnot result into any gain but in the long run you have an asset...and maybe the value of the asset may have grown by many folds....then you can always sell the house and buy a better one in the city you want to settle down...
I am a doctor working in the UK. I am interested in buying a house in Tenkasi in Tamilnadu.How do I go about this? I dont know anybody there.Please advise.
The discussion is fine for those who have the resources and can buy and those who have resources but do not want to buy because they are still early in their careers and are not sure where their careers will take.
An important consideration is that many people who are looking for accomodation to meet their family needs - marriage of their son but do not have the resources - what should be the solution. Is renting an apartment a good option. What is the calcualted outgo between the two options - renting or making a massive capital investment including borrowing from banks, etc. Please discuss this option too.
I agree to some extent with the the veiws expressed therein.But not all are correct. Few of the assumptions are too abject and nonsense to be discussed. For ex: "If you have been paying Rs 6,000 as rent every month, that is Rs 72,000 every year. Over the years, it amounts to a tidy sum that has no benefit for you at all." How far is this correct.Does the writer intend to say that we do not derive any benefit by paying the rent.If it had no benefit at all why would anyone go for a rented house. If you see, we spend approximately the same amount or more towards the food bill per year. Do we moan that we spilled so much amount because it all had gone as waste next day.No, we don't, because we survived for a year, so also, if we have paid 72000 towards rent for one year it means that we bought the dwelling for one year, so that was the benefit we derived. So hence forth do not even attempt to write such things. Go and ask a businessman, which one will he prefer? He will definetly prefer to say that he prefers to pay rent.
well , renting a good house would cost anyone around 8-9K ..if u want to live a comfortable house.. well and tht cumulates every year just benefitting in HRA but anyways one is left with nothing at the end of the day
and buying a house would definitely have ur budget increased ye additional 2-3K but u end up having benefits on ur Income Tax and saving at the end of the day which you could definitely utilize in future if u do not intend to continue in the same and looking for bigger rooms can easily sell the same
As the writer has correctly pointed out that it is a completely situational decision. But i still feel taht the article was tilted towards buying rather than renting!!! But at the end of the day its the persons decision and not anybody elses...if you can afford it u can have it ..even if you are on the move taht house can be put up for to-let which will get you good side income..
Nobody agrees that renting a house is better option.But when you should buy is debatable here.But here i am telling you what you should consider apart from the price of a square feet for a house. I recently purchased a flat and was in rent for 4 years and the rent paid in these years 2.28 Lakhs.If you reduce the tax benefit on HRA,it would be Rs 1.5 lakhs.But i postponed it because to accumulate savings for down payment and other extra works.When you buy a home,you should have money not only for down payment but also for extra works like interiors,wooded work and etc.So work out your financials well and most importantly see that EMI payment should not disturb your current life style.Otherwise it is a trauma if you need to compromise for small things in day to day life.
the comparison given was lacking one basic fact. if you happen to live in a rented home and you are paying Rs.6000 as rent and think of buying a home so that you do not waste this money, as mentioned in the article - a home you buy where you pay 6000 as emi would be one fourth the size of the home for which you are paying Rs.6000 as rent. this fact was not coming out of the article.
You have adressed a very relevant issue faced by most of us; In my opinion one should start thinking about buying a house when the person is in early 30s when they are likely to have accumulated sufficient margin; One should never buy a house in small towns if they do not have plans to settle their and it is just for investment purpose. Some time we tend to buy a house at a location we can afford at that moment without thinking about future salability of the property; this should be avoided; It is better to buy a small house in a metro rather than a bungalow in a moffusil place; Alway try to buy two small places which are adjacent to each other rather than buy a single big place; through this you will rental income to pay the EMIs; If you have a transferable job then it is better to rent during initial years;
RE:when to rent, when to buy
by SRG on Aug 09, 2006 12:29 PM
MS. ANAMIKA, I think you should take a re-look at your expenses. Though you are not paying much towards rent in my opinion your other expenses are way too high for your level of income. Is there really a need to incur phone bill of Rs 3000. You can go pre-paid, Do you really need a car as well as a bike? These kind of introspection would pay off in the long run. I disconnected my mobile after I started incurring montly bill of Rs 600/- and this is just for indulging in chatting. By waking up half an hour earlier than my regular time I am saving Rs 500/- each month which other wise would be spent on rickshaw. In the long run it is better to save than be sorry
