Introduction

Currently, the debate over renting vs. buying a home in India is a hot topic. Many people are weighing the pros and cons of renting vs. buying. We’ve all heard the saying that having “apna ghar” (our own home) is essential and a valuable asset, but is this perspective still valid? Financial advisory firms increasingly suggest that renting may be a better option than buying. While both renting and buying have their advantages and disadvantages, today we will explore why renting a home could be a smart choice for you.

1. Financial Freedom

Purchasing a home involves substantial upfront costs, including a large down payment, registration fees, taxes, and various loan-related expenses. In contrast, renting typically requires just a security deposit and the first few months’ rent, making it a more affordable option. This allows you to retain more of your money, granting you the financial freedom to invest, cover medical expenses, or save for future needs.

For instance, consider a house valued at 60 lakhs. If you make a 20 lakh down payment, your monthly EMI would be around 45,000. Instead of buying, if you choose to rent the same house for 25,000 per month, you could invest the 20 lakhs and still have 30,000 left over each month to invest in a Systematic Investment Plan (SIP). This strategy not only provides immediate savings but also opens up opportunities for long-term financial growth.

2. Flexibility

One of the major advantages of renting is the flexibility it offers. Whether you’re exploring a new job opportunity, seeking a change of scenery, or simply not ready to settle down, renting allows you to relocate without the hassle of selling a home. This adaptability makes it easier to navigate unexpected life changes and seize new opportunities as they arise.

3. Zero Maintenance Hassles

As a tenant, you are not responsible for the maintenance of your home; that responsibility falls to the landlord. Whether it’s a plumbing issue or a roof leak, those problems are the landlord’s concern, not yours. This arrangement saves you money, time, and energy, allowing you to enjoy a more stress-free lifestyle.

4. Flexibility to Upgrade or Relocate Anytime

Renting offers the convenience of easy relocation, whether you’re changing jobs, moving to a new city, expanding your family, or looking to upgrade your lifestyle. In metropolitan areas, purchasing a home can be prohibitively expensive. However, renting allows you to secure a residence in a desirable neighbourhood with access to schools, grocery stores, restaurants, parks, and other amenities.

5. Access to Premium Amenities

Many apartments in major cities offer attractive amenities such as swimming pools, round-the-clock security, well-maintained parks, gyms, parking spaces, and play areas for children. Acquiring a home with these features can be quite challenging and expensive, but renting makes it more accessible and affordable to enjoy such conveniences.

6. Market risk

Real estate prices, particularly in tier-one cities in India, can be quite volatile due to fluctuating interest rates, economic shifts, and changes in government policies. As a tenant, you can sidestep these uncertainties, allowing you to focus on your work and enjoy your life without the added stress of market fluctuations.

7. Predictable monthly expense

Renting is generally a fixed cost during the term of the lease, making it easier to budget. Ideally, rent should be 20-30% of your monthly income to maintain financial stability. If you are looking for a budget-friendly, hassle-free, and flexible living option in cities like Mumbai, Delhi, Bangalore, or Hyderabad, renting a home is your best bet. You can use platforms like NoBroker, MagicBricks, 99acres, and Housing.com or consult a local brokerage.