Property Tips: Rent or Buy?

Buying a house is an expensive proposition and prudent decision is warranted. While living in a rented apartment, this feeling comes to haunt everyone that my hard earned money is being taken by my landlord; and, when the rent is very high, the cumulative rent money could have helped me purchase my own home. The purchase decision based on such sentiments will lead to a fairly bad deal.

The comparison between renting and purchasing a home depends on several factors, the most important being the economic aspect of it.

Property Investment Tips: Rent Vs Buy

The comparison between EMI and rent gives a good idea as to the choice making good economic sense. People calculate the price to rent ratio for a given period to arrive at a sound decision. A ratio of above 25 shows that buying a house is more costly than renting whereas a ratio below 20 means buying is cheaper. If one is starting early in life, purchasing is a good decision.

One must also consider the duration of stay in a particular location. If the need is for permanent settlement, a purchase is better compared to renting; renting will be preferred for temporary stay employment

Lifestyle choices also play a major role in decision-making. If one loves the rush and madness of city life, renting is good as the property prices will be very high.

At the same time, the resale value of the purchased home away from the city will be less and it may take time to sell the property at a good price. For many people, the intrusion of the landlord in their life is not preferred.

Rented property rarely allows the incentive to invest in furnishing the house or doing their interiors. Purchased property is desirable for those who want their home to make a style statement and who consider their image important in society.

Owning a house is a matter of pride in our society. One should purchase when they want to use the opportunity to make money on the appreciating value.


The decision also depends upon which choice provides you with your daily needs such as proximity to office, availability of transportation, schools for children in near vicinity and easy accessibility of basic amenities.To know more visit

Leave a Reply