Renting vs Buying Property in Delhi

A high influx of migratory population in the capital has led to the demand for accommodation soaring high in the capital. And now, here comes the big question: should you rent or buy property in Delhi?

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As real estate firms continue to hurl extremely lucrative offers to lure you into being the proud owner of a 2 BHK apartment in Delhi, vouching for a flat for rent in Delhi comes across as an equally sensible idea. Here, we shall discuss about the pros and cons of renting as well as buying property in Delhi.

The key parameters to consider while contemplating on renting vs. buying property are:

Duration of stay:Photo Credit: www.planetofsuccess.com/blog/Flickr

This is related to whether you plan to reside in the property on a temporary basis, or are you looking forward to permanently settling down. Again, there are several factors which help you determine this, including your age, the industry you work in and the nature of your job/business. For example, if you are employed in the National Capital Region (Noida, Delhi or Gurgaon), it makes sense to buy property in Delhi only if your job location will remain the same for at least 5-7 more years. For a relatively shorter duration of time, it makes more sense to go for flats for rent in Delhi.

Location:

As real estate dynamics vary from locality to locality, it is very important to study the local market before deciding on whether you will rent or buy property in Delhi. Buying properties makes sense in upcoming areas and suburbs including Noida Extension, Manesar or Ghaziabad, whereas it would be wise to rent a property in highly developed areas like South Extension, Vasant Kunj or Vasant Vihar.

Prices:
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The most important aspect of property is the price at which it comes to you. While renting a flat demands lower initial costs, you must keep in mind that the rent will gradually increase year-by-year, and the amount you need to shell out will be payable on a monthly basis for as long as you reside in the property. On the other hand, buying a flat will lead to higher initial costs. However, the amount will gradually keep reducing until the finance, if any, is paid off. Buying a property will also benefit you with savings on tax, which is another draw for investors. Be sure to do a financial health check-up before you decide on the price factor.

As a general rule, if the property prices in a city are fairly reasonable but rent rates are high, one should consider buying the property, and vice versa. Looking to buy a property in India? Log on to PropTiger.com.