As most of the people working in Mumbai belong to other states. So, they prefer to rent a property rather than purchasing one because they might get transferred again. Majority of the salaried people have to tackle the common dilemma whether to buy a house or rent one. Deciding on this one can be quite tricky but it’s all up to you what you decide on doing. However, in order to help you in making up your mind we have jotted down some of basic questions. You must ask yourself these prior to deciding whether to rent a property or buy one.
Are you Planning to Live in Your Current City Forever?
This is the most important thing that you need to consider while deciding to buy or rent a property. Are you willing to live in the same location forever? if you have a job in which you can get transferred often then purchasing a house isn’t for you. Real estate investments involve an enormous amount of money and you cannot sell them whenever you like. Unless, you buy a house in Piramal Aranya Byculla, which is hot-cash as you can sell it whenever you want.Therefore, if you don’t have job certainty then buying a house isn’t a wise choice as you will be bounding yourself to that city.
Can You Afford to Buy a House?
Affordability is another governing factor that will directly affect your decision. Ask yourself, can you afford to buy a house at the moment? We know that purchasing a house isn’t an easy job as it will involve a major portion of your capital. If you are a monthly-paid person then a house will be the most expensive that you will ever purchase. For most of the salaried individuals buying a property means taking a loan for arranging the amount.
Thus, you need to evaluate everything carefully like how long you will stay in this city, distance from home to work, etc. Only opt for buying when you have saved at least 25% of the deposit amount required for purchasing. This way the loan that you will need to take will be less.
Will you be able to Repay the Loan?
Undoubtedly, home loans are for long durations with easy monthly-instalments but still you need to pay a handsome amount each month. So, before you get yourself into this quagmire, check whether you can afford to pay per month instalments or not. These days you can easily get the majority of the flats for sale in South Mumbai on easy EMI loans. But the question is do you have the ability to afford this long-term floater? Before taking any loan make sure that you have enough resources to tackle any unforeseen circumstances like job loss or medical emergencies.
Can you Settle for a Small House?
The prices of properties are too high as the demand of property has increased. Amid this situation, to fit the house in your budget many real-estate developers have considerably reduced the size of property. But can you actually live in such a small place or do you want to live in it? just because you don’t have the funds to afford a fancy house doesn’t mean that you have to cage yourself in a tiny one. According to experts, one should never buy a house that doesn't seem suitable only because of price.
Buying a house is one of the biggest decisions of your life. So, there’s no need to rush it, only go for a house that meets all your requirements. Until you can’t find one suitable, you can live on rent. It is the main reason why the majority of people living in big cities like Delhi & Mumbai rent a property.