A house is a basic human need. It is a place where we live, create memories, and carve a comfort zone for ourselves. For the new age generation, with increasing disposable income, the question always remains, to buy a house or rent a house? Especially in such a market condition where you have a lot of options for both renting and buying.
Let’s take a case here about Naman and Nita. The young couple originally hails from Gujarat and currently reside at DLF Phase – 1 in Gurgaon. They have a combined monthly income of INR 1,50,000 and shell out INR 30,000 as rent for a small 2 BHK unit. “We have an ancestral home in Ahmedabad”, says Naman, but promising jobs brought them to the millennium city. Both of them have their offices located at DLF Cyber City so the commute is not very hectic.
So should Nita and Naman buy a house or stay put in a rented accommodation? Here are some of the factors they can consider while taking this decision.
1) Career Path – This is an important factor. Nita says that they both are open to shift to another city, say Bangalore or Pune any time provided they both get better jobs. Career is quite important to so many young professionals. Buying a house is a long term decision. If you are buying a house, then factors like resale value in case of a shift has to be worked out.
2) Financial Goals – Buying a house involves a certain down payment which needs to be paid at time of booking. Many builders are working out innovative payment plans where in the entry price might not be very high. Still, the couple needs to work out a financial plan.
3) Type of property you are looking for – Everyone has a different view point on the type of property that makes an ideal house. While some are content with a small house in the center of a city, others are happier for a larger space, even if it is in suburbs.
In this case for Nita and Naman can go for the option of buying a house because of the following reasons –
a) Sense of ownership – The sense of ownership of an own house is a powerful emotion. No more interference of landlords or anyone else.
b) Rock bottom prices – Property prices in Gurgaon have reached at quite affordable levels. This is a buyer’s market with several options available. Areas like New Gurgaon and Sohna Road are amongst the most promising upcoming locations for buying a house. A decent 2 BHK house in these locations would cost around INR 70 lakhs. The EMI would be roughly around INR 50,000.
c) Save on rent – The rent out go adjusts with the EMIs and it is a big plus.
d) Capital appreciation – A property market like Gurgaon promises great returns on property. The capital appreciation will help a couple like Nita and Naman set a cushion for later life.