It is not easy to decide whether to buy or rent a home in Pune. To come to the right decision is a time-consuming process. Real estate trends in a major city like Pune reveal that buyers research their options carefully before making a purchase. For instance, buyers considering 1 and 2 BHK flats in Pune are often ready to rent a home, instead of buying it. Renting or buying a home in Pune depends on several factors. Each has its own advantages and disadvantages. So, if you are looking for a home in Pune, read this blog that gives you an idea about the advantages and disadvantages of buying or renting a home in Pune and make a wise decision.
Advantages and disadvantages of buying and renting a property in Pune
Advantages of renting a home
- Ideal for Those Who Are Moving
If your job requires often relocation, the best option for you is to rent a home. Renting relieves you of the time and expense that buying a house would require.
- Low financial commitment
Renting a home does not incur the exorbitant costs associated with real estate investment. At the time of renting a house, you are just required to pay the security deposit and monthly rent.
- Cost of Fixed Rent Stability
Renting a home may not be too expensive, as you generally rent depending on your income. However, paying monthly instalments may put a strain on your finances.
- Income Tax Advantage
You are eligible to get a house rent allowance (HRA) if you rent a property, however, you are not eligible if you own a home.
- Low cost of upkeep
Generally, when you are on rent, you will not have to spend on any maintenance or repair. The expenses, such as property taxes, societal bills, and others, are maintained by the landowner.
Disadvantages of renting a home
- Continual Shifting
Renters are required to move around frequently. It makes the entire family worn out with packaging, rearranging, and making modifications.
- Owning a home becomes difficult
Since renters have to pay high rent, a good part of their income goes into rent. It makes saving difficult. Thus, the majority of people living on rent find it difficult to buy a home.
- No Refunds
Unlike those who own their own homes, renting brings you no profits and does not allow you to create capital or investment property.
- Issues with Property Maintenance
A rental home does not give you full authority over the property. You may not even be able to make changes and decorate it the way you want your home to be. The landowner may impose several restrictions, which you are required to abide by them.
Advantages of buying a home
- A feeling of accomplishment and satisfaction
Ownership of a property has always been associated with prestige. It makes you feel satisfied and gives you a sense of achievement. It motivates people to work hard so that they can purchase a home.
- Permanent Investment
Although purchasing a home requires a lot of investment, it is better in terms of long-term investment. It makes more sense to buy property than to live on rent because property prices often rise over time.
- Your Own Way of Living
Owning a home makes you the boss of the property. It gives you the freedom to do whatever and whenever you like, such as you can decorate, furnish, and make changes to your home as you choose.
- More cost-effective than renting
Many calculations show that, in the long run, owning a home is more advantageous than renting. The value of your property always goes up over time. Though you will have to make a larger investment when buying a home, it pays off and proves cost-effective.
- Chance to Improve Your Credit
It increases your credibility and may benefit you for future pursuits.
Disadvantages of buying a home
- Expensive
Buying a home is always more expensive than renting one. Owning a home comes with a number of charges, such as maintenance and repair costs, and other expenses.
- Even More Expensive with a House Loan
If you are purchasing a home with a home loan, the deal becomes even more expensive. Besides the actual rate, you need to pay a sizable amount in interest and additional expenses. These make the buying process more expensive.
- Hard to Change if Required
When you own a home it becomes difficult to relocate. It will pose a number of difficulties and inconveniences. Relocating with all of your possessions can be challenging and expensive.
- Tax on real estate
Property taxes are an additional expense you will incur as a homeowner.
Conclusion
Interpretations of Pune’s real estate market indicate that the city provides excellent possibilities for both homeowners and renters. Depending upon your requirement, how much you can spend and what are your priorities, you should make an informed selection.
Sukhwani Constructions, the top builder in Pune, will assist you in finding the home of your choice. So, if you are looking for a home, connect with us.
