Is it better to rent or buy a house in Bangalore? - 0 views
-
Kalpana Reddy on 08 Oct 12Buy vs Rent Everybody dreams to own a house. However, now when the property prices are shooting up ever higher, the question always pops up whether it is better to buy a house or rent one. There have been a flurry of arguments both for and against buying as well as renting a house and you need to consider all the relevant angles before deciding on it. Many theories have been put forward to help one discern if renting is better than buying a house at a given time or vice versa. One thumb rule says that if rent per annum of the property is within 2 per cent of the property's worth, then renting may be a better option. However, if you are paying more than that as rent, then it is advisable to go for buying as the equated monthly installment (EMI) payable would be more fruitful than paying a high rent. Another thumb rule says that you should just multiply your monthly rent by 240. If you can buy a house for less than that, then buying is usually better in the long-term. A house is an asset and the down payment and EMIs will go a long way to create a stable asset for you. No matter how many thumb rules are forwarded or how many indices are developed, it is always advisable to judge your respective situation before deciding.