Buying a House vs Renting a House in Mumbai

Mumbai is known as the city of dreams and aspirations. People move to this bustling city for work, business, academics, and many other reasons. Moving to Mumbai leaves the settler with the most important question i.e. buying a house vs renting a house.

According to statistics, there were 1,27,139 property registrations, which is a 4% hike as compared to 1,22, 035 registrations in 2022 which means that more people prefer buying a house.

However, the question of whether is it better to rent or buy a house still remains as the financial and other aspects play an important role in the decision. This article aims to assist home buyers facing the dilemma of buying an apartment vs renting to come to a conclusion and make an informed decision.

Buy or Rent a House in Mumbai?

Given the spiked-up property rates in Mumbai, there is often debate whether one should buy a property or stay on rent. While finance is the most important consideration, people must answer some questions that can help in determining which option is best suited for them.

Does one already own a property? If yes, there may not be a need to buy another unless one has a surplus.

Secondly, it is important to consider how much savings one has. It is necessary to assess if the amount is sufficient to make the down payment, manage the EMIs, etc.

Thirdly, is it okay to move to a new house every few years? Moving into a rented place means having to shift houses every few years and setting it up from scratch. For bachelors and students, this option may be feasible. However, those with a family may not prefer this kind of lifestyle.

Is it Better to Rent or Buy a House: Factors to Consider

Every individual is faced with different situations and has personal preferences concerning their lifestyle. Thus, the decision to owning a home vs renting depends on the following factors:

• Financial Situation

Buying a house in Mumbai can be an expensive event given the high property prices, high-interest rates on loans, EMI payments, and other fees. Those who have the means and savings to accommodate these expenses can benefit from investing in a home in the long run. On the contrary, if one does not have a stable income and the means to invest in the long run can benefit from renting a home.

• Location of the Property

Mumbai is an industrial hub and the property rates here are skyrocketing. The property prices are dependent on the location and demand. Thus, if one prefers staying in a prime location, it would be best to buy the property as it allows them to own a property in an excellent location.

• Maintenance Expenses

Every property comes with its maintenance costs and other additional expenses. Some of the expenses include repair costs, monthly maintenance, property taxes, etc. Those who have the financial strength to bear these expenses prefer buying a property and in the opposite scenario, people prefer to stay on rent as the owner bears all the added expenses.

• Long Term Plans

Those who wish to establish a base in Mumbai must opt for buying a property as it will give them a sense of stability and provide relief from the hassle of shifting the house every few years.

Advantages of Buying a Property vs Renting

After careful consideration of the factors stated above it is important to know the advantages of buying a property vs renting. This will help buyers to weigh the pros and cons and make an informed decision.

Buying a Property

• An increase in the property value over the years gives a good appreciation in terms of monetary returns.
• Unlike rents, the interest amount and principal amount do not change every year.
• If one rents out the property it becomes an investment
• Owning the house gives freedom to decorate it as per the buyer’s wishes

Renting a Property

• Renting is a feasible option for those who relocate every few years due to profession, academics, etc.
• The deposit amount is less than the downpayment for buying a house.

Conclusion

There is no doubt that owning a home is a feeling of pride in every sense. However, buying a house vs renting a house, both come with their advantages and disadvantages in terms of finance and other factors. One must carefully study and understand the long-term benefits and losses before deciding the best option.

Individuals exploring housing options in Mumbai have a look at Piramal Revanta for exquisite luxury abodes that take the buyer into the world of extravagance.

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.