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Should I EMI or Should I Pay Rent in Pune

The last time we discussed how buying 1 bhk flat in Pune is really the most solid, secure investment you could make for your future.

Now let’s take on the most debated real estate topic. Whether to buy or rent a house?

We have systematically tabulated the pros and cons of going with renting and buying, to sort your dilemma.

Have a great read.

Renting:

Pros Cons
Flexibility – Different stages of your life need different housing needs – marriage, children, parents moving in etc. You can move from 1bhk, to 2bhk and further up. Increase in rent – Rents across all cities in India are on the rise, so you may be facing an increase in your rent as soon as your rent term ends.
Transferable job – While staying in a rented house, you can easily shift to a house closer to your new office in order to cut down on
commuting time.
No tax benefits – Renters cannot provide anything for tax deductions.
No financial commitments – You don’t incur long-term liability in form of EMI that could last 15-20 or more years. Dearth of storage – Rented houses are usually smaller than the ones you buy.
Low cost upfront – When you rent, you are required to pay a small token as deposit and monthly rent. No return on investments – Your money is going ‘waste’. There is no return.
No property taxes – You will not be obliged to pay the property taxes due for the apartments you rent.

Buying:

Pros Cons
Huge asset – Once you’ve paid off your mortgage, your home is yours and its worth much more than you paid for. There’s an emotional connect. Huge down payment – Most cases, 20% of the total value of the house.
Build on Equity – As your home value appreciates, you can use that equity to help you afford a bigger home or have a more comfortable retirement. Reduce other expenses – To gather the funds, you need to tighten your belt and thereby reduce other expenses.
Live rent free – Once your mortgage is done with, you can peacefully lead a ‘rent free’ life. Maintenance – When repairs and maintenance becomes inevitable, expenses have to be borne by you.
Do as you please – You can spend money to improve your house unlike a rented house where you always need the landlord’s permission. In case of loss of job – If you lose your job, paying the EMI becomes the chief hurdle.
Tax benefits – Homeowners can deduct loan interest payments and property taxes when itemizing their income taxes thereby offsetting the cost of your housing.
EMIs may be fixed – If you choose a fixed rate loan, your principal and interest payments remain the same for the duration of the loan. But, insurance and property taxes may vary.
Generate further income – If you buy a home and leave it, you can rent it out or sell to generate income.
Emotional Connect – Living in your own home has a distinct joy. It’s a major decision in one’s life.
Live harmoniously in a community – Once you buy a house you are more likely to get involved in your community much more because you know you’ll be there for years.

Buying your dream home is a major milestone in your life , and we all know it doesn’t come easy.

And when faced with mounting rent and depleting loan interest rates, purchasing a home in Pune looks more affordable, doesn’t it?