While owning a house is a lifetime ambition for many Indians, it is not for everyone. While homeownership rates in the India are now high, this has not always been the case. Historically, families were forced to either construct their own dwellings or rent from others. While renting is not ideal, it does offer certain benefits. For some people, renting may make more financial sense.
Here is a compiled list of some of the most compelling reasons to 1 bhk for rent rather than purchase a property below.
Table of Contents
There are no maintenance or repair costs.
One of the advantages of renting a property is the absence of maintenance and repair fees. This implies that the landlord is entirely responsible for all upkeep, improvement, and repair when you rent a property. If an item breaks down or your roof begins to leak, you contact your landlord, who is responsible for repairing or replacing it.
On the other hand, homeowners are liable for all house repair, upkeep, and remodelling expenditures. It may become pretty costly depending on the nature of the activity (and when numerous tasks arise concurrently).
Another financial advantage of renting is having access to facilities that would be too expensive otherwise. Many midscales to expensive apartment complexes provide amenities such as an in-ground pool or fitness centre as standard.
There are no real estate taxes.
One of the primary advantages of renting over owning is that tenants save property taxes. Real estate taxes, maybe a significant burden for homeowners. Property taxes may cost thousands of rupees each year in certain places.
Although property tax computations might be complicated, they are based on the house’s estimated worth and the quantity of land on which it is constructed. Property taxes may be a significant financial burden for homeowners when new projects get more prominent.
There Is No Down Payment
Another place where renters benefit financially is in the initial expense. Generally, renters are required to pay a security deposit equivalent to one month’s rent. That is often all. This money is supposedly refunded when they leave the rental property, providing they have not caused any damage.
More excellent Choice in Where to Live
Renters may live almost anywhere, but homeowners are limited to regions within their financial means. While most house purchasers cannot afford to live in an expensive city like Mumbai, Delhi, Pune, etc., renters can. While rents might be exorbitant in locations with high housing prices, renters are more likely than home purchasers to find a reasonable monthly payment.
Rent Amount Fixed
Rent is set for the duration of the lease agreement. While landlords have the right to increase rent without warning, you can budget more effectively if you know the amount of rent you must pay.
The same is true for homeowners who have fixed-rate mortgages, which also facilitate budgeting. However, adjustable-rate amounts are subject to fluctuation, resulting in increased mortgage payments due to increased interest rates. Property taxes are another factor that might impact homeowners’ expenditures but not renters.
Interactions with others
Rental houses are perfect for social events since they can accommodate a high number of people in a small space. As a result of the various events arranged by management and the many common areas available in the community, renting a property may be an exciting and relaxing way to meet new people while also trying something new.
If you are renting a place to live, there are just two essential payments to make: the rent and the utilities. While landlords may cover utilities in some circumstances, having just those two payments allows renters to better manage their money and put it towards other debts or savings accounts.
If you do not plan to live in the same place for a lengthy period of time, renting a house is the ideal alternative since it carries substantially less duties than owning a home does.
According to personal financial gurus and authors, while acquiring a home, you should expect to be there for at least five years. In order for house prices to increase and for you to sell the property and return your initial investment, experts recommend waiting five years.
And for individuals who are unable to commit to a five-year commitment, renting is unquestionably the more attractive alternative. When you rent a property, you have the freedom to do anything you want with it in the future. If it involves moving across the country, you may be able to do it without accruing a debt that will last for 30 years.
These were some compelling reasons to take 1 bhk on rent.