Is "To Buy or to Rent" a Lingering Question in Your Mind

Sound employment facilities, urbanization, flourishing economy and enhanced infrastructure usually form the determining factors when it comes to choosing a city to live in or operate a business from. City has over the years taken over the mantle of a flourishing economy and therefore the demand for living and working spaces has increased dramatically. Residential apartments have undergone rapid transformation from the more conventional and budget oriented spaces to luxurious and contemporary abodes. Despite a city's growth prospects, many buyers/investors are skeptical when it comes to purchasing or renting a property. They are most often undecided. There are several schools of thought that favor each of the cases but the eventual decision vests on each buyer.

Schools of Thoughts behind Real Estate Investment

Although, the dream of every resident or migrant in a city is to own a beautiful home; high prices, increasing home loan rates and other liabilities push him to consider rentals. He believes that renting is far more economical than buying. But, the other community strongly believes that if the rentals are directed towards payment of Easy Monthly Installment; in a few years, one can end up owning a home of their choice. Hence, the battle continues. Conventionally, gut feel or guidance from dear and near has been serving as the contributor to make a favorable decision.

Contributing Factors

If you want to rent or buy, there are certain elements you must consider. The first and foremost is your current financial situation. This will help you ascertain the kind of decision you want to take. If you have no issues with your financial position in the current and near future; flats for sale are a great option for investment. However, if you want to wait out; there is no dearth of good rental options in the city that you can take advantage of.

Secondly, the income category you belong to plays a big role. If the total net income of your family is conducive to payment of Easy Monthly Installment substantially; buying a property is a good decision. Thirdly, age of the investors is also a determining factor. Financial institutions look at the age, income standards and assets of the buyer before sanctioning a loan. If your years of service are frugal and also do not have assets to mortgage, then the amount of loan sanctioned will decrease.

While owning an apartment or any other property is a lucrative option owing to huge capital appreciation and/or rental gains; it involves liability. Therefore, your financial position should help you determine your choice when it comes to buying or renting. But all said and done, if you choose to purchase an apartment or villa; it is always wise to choose a strategic location because such areas offer high return on investment.