The Pros and Cons of Buying and Renting a Home in Mumbai

Photograph: Karl Johnson / Flickr

Just like owning a home, there are pros and cons of renting a piece of property. There are advantages and disadvantages associated with both buying and renting. For instance, owning a house is a long-term investment and gives you a sense of security whereas renting provides you with more expendable money in the short term. If you are looking at the different 2bhk flats in Mumbai and unsure of whether to rent or buy them, you can take a look at their pros and cons.

Pros of Buying

Owning 2bhk flats in Mumbai will give you long term benefits in terms of security, equity, and potential growth of personal wealth.
The value of 2bhk flat in Mumbai tends to appreciate over time, which enables you to earn a profit when you decide to sell it.
Your house belongs to you legally once you buy it and you don’t have to conform to the restrictions or regulations of landlords.
You get creative control of the property when you purchase it. This means that you can alter the 2bhk flats in Mumbai by renovations, landscaping and decor changes.
Buying also gives you the option of renting property in the future so you can earn regular income. Income-generating properties are also eligible for tax deductions so you can save money as well.

Cons of Buying 

There is a huge financial responsibility, which includes regular house maintenance and bond repayments.
Ownership of 2bhk flats in Mumbai isn’t without additional costs such as taxes, rates, maintenance and insurance.
There is a risk that you may not make a profit through resale if property prices decline, location becomes undesirable or there is a recession.
There isn’t much mobility for the homeowner because there is lots of paperwork involved in leasing or selling the property.

Pros of Renting 

This option gives you greater flexibility and it is best for those faced with sudden changes like job relocation. A long-term commitment isn’t necessary.
You might not be able to afford 2bhk flat in Mumbai, but you can definitely rent one.
Moving out is quite easy for a tenant as they don’t have to worry about selling the property because that’s the landlord’s responsibility.
If you decide to rent a property, you have money left over, which you can use for investing in other vehicles like stocks.

Cons of Renting 

Rules of the lease agreement bind you so you may not have a lot of freedom.
You need to obtain the consent of the owner in order to make changes to the property.
Renting doesn’t provide you with any return on investment or wealth creation because the property doesn’t belong to you legally.
You don’t have any control over the fluctuations in rent because they are determined by the owner after adjusting them for inflation.
Your lease agreement may not be renewed so you may have to look for other 2bkh flats in Mumbai. 

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