Buying Vs Renting an Apartment

Buying a Home is especially if it’s your first home is quite an important decision in any person’s life. The reason is simple; it’s the huge financial decision that you are gearing up to make and the subsequent cut backs you will have to endure for it. While you contemplate this, the inevitable debate in your mind is whether you should buy a home or simply rent out for the time frame as the rent seems viable an option. But Renting is also a huge investment decision, one which you do not realize in the short term but in the long term.

So before you decide to go for the cheaper alternative, here are some things you should consider before decide to go all out for any decision.

Finances: Obviously the first point since it’s why we are in this discussion at the first place. Are you ready to spend a huge chunk of your finances on buying a house? You need to make a down payment to the builder or discuss with your bank if you are considering a loan. That’s right; banks offer you EMI options so as to repay the bank what you took on loan in easy installments over the years. Rental schemes are pretty much the same formula where you pay to stay on a monthly basis, should you fail to pay your dues, you are asked to vacate. Not to mention the sum of funds you would have to pay as deposit and brokerage would be quite a bite out of your immediate funds.

Time Period: You plan to stay at a place for a short time then obviously it’s not a smart idea to buy a home there. Common sense! But many people, especially from Goa, Stay abroad and return either for vacations or retirement.  So a decision over here is about personal choices and then the financial point of view.

Future: While staying in a rented home, the rental price is expected to rise if not in a year then at least every 2 years. Market rates assure you that money value tomorrow is lesser than what it is today, so the rent you pay at the start of your stay is bound to fluctuate. In such a case EMI holds a better prospect. EMI is calculated at the start of the Loan tenure and the value does not fluctuate with every passing year (unless you choose a flexi rate). So as the years pass by, you pay the same amount (or technically lesser considering the future value of money) where you started from.

Taxes: As long as you are paying for a residence, you have a tax reprieves and deductions in your favor, be it rent or mortgage interests. You should calculate what suits you best.

 

Sterling Apartments in Panaji Goa

While there are other aspects of decisions involved in purchasing an apartment in Goa, these are some of the important points you need to give consideration to before purchasing your home.