EMI vs Rental – Which Should You Opt For?

To rent or not to rent? It is a dream for everyone to own their home but it is hindered with the thought of paying the bills. The dilemma that haunts everyone is whether to rent a house or to own a house.

You may think renting a luxury apartments in Bangalore is better than owning a house but on the long run, you would end up paying rent every month without creating any physical asset and in fact more than the actual price of the property. Of course, renting flats in Bangalore comes with its own benefits like renting a place near your workplace for lesser rent, shifting to a different place according to one’s needs, lesser pressure on paying EMIs. Owing to the pandemic, this is the right time to invest on real estate. The RBI has reduced the interest on home loans to 7% from 8-9%. It is the right time for first-time investors to contact some of the top builders in Bangalore.

For instance, Mr. Sumit is planning to buy a 2bhk flats in Horamavu, Bangalore or even a 3bhk apartments in gunjur, Bangalore. The price of properties starts from 65 lakhs in Horamavu. Supposedly Sumit pays 30% of down payment and rest 70% through EMI with the interest rate of 7% according to the current RBI regulations. The EMI which Sumit pays will be more than the rent which he will pay for the property. Let’s say the rent of the same property would be 25,000 rupees, lesser than the EMI but in the hind side, Sumit will be paying rent every month without creating any physical asset. This asset creation would improve Sumit’s investment value and can own the property after paying the EMI.

For those who are still confused, here are few benefits on buying your own property.

1.Sense of satisfaction

Satisfaction of ownership is always the best. Stretching your legs and relaxing in a house you own is beneficial for you and your family. This is a long-term plan that you can work on constantly.

2.No uncertainty

You are free from finding suitable houses for rent, negotiating with a lot of parties or the entire hassle of living as a tenant. Your EMI’s are the same until it is paid in full but you still have your basic needs set right.

Read More – First time home owners? Here’s what you should know.

3.Build your asset

Instead paying rent, if you pay EMI for your home loan, you are actually building an asset for yourself gradually. If you pay rent repeatedly every month, it doesn’t really create any kind of physical asset for you on the long run.

4.My house My rules

One of the most attractive perks of owning a house is that you can design, refurbish or repair it however you want to. There are no landlords to question you but on the other side, you are dependent on your landlord for almost everything.

Read More – Things to know before purchasing real estate

5.Financial security

Paying rents may feel cheaper than paying EMI but in the long term it is more expensive than the cost of the house, moreover rental costs cannot be recovered.

If we leave out the math in calculating the EMIs, interests, down payments, then the only thing which matters is the sense of security and comfort which can be achieved if we feel at home. Home is the place where we make inerasable memories and there is no place like home. Some of the Top builders in Bangalore have flats that assist with all the finances with several options.

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