Hey! Congratulations on your new house! That is something which most of us would hear when we buy our “dream home”. That is an aspiration which we want to achieve at some point of time in our lives. At that point of time, another thought runs through – whether to invest lumpsum into buying a real estate property or to simply rent it out. This decision is based on two important but contrasting aspects – a
One additional point in owing the house, in case if owner get transferred to other city and couldn't find the tenant, then owner need to bear the vacant cost as well for that time period and in case of selling, owner need to bear the broker commission and pay capital gain tax if any.
In my opinion, if the annual rental yield is below 2.5% (for example annual rent paid being Rs. 3 Lakhs and property value being 1.2 crores) it makes more sense to stay put on rent.
However, if the rental yield is more than 3.5%, it is more prudent to acquire the property.
Between 2.5% and 3.5%, it depends upon various situations, e.g.opportunity costs; the location / builders reputation / prospects of appreciation and the development aspects; career prospects etc.
Very nice
Very informative 🙏
Nice article, with fact's & figures.. worth reading for buyer & seller... 👍
Very insightful,
One additional point in owing the house, in case if owner get transferred to other city and couldn't find the tenant, then owner need to bear the vacant cost as well for that time period and in case of selling, owner need to bear the broker commission and pay capital gain tax if any.
Excellent article, Apurva!
In my opinion, if the annual rental yield is below 2.5% (for example annual rent paid being Rs. 3 Lakhs and property value being 1.2 crores) it makes more sense to stay put on rent.
However, if the rental yield is more than 3.5%, it is more prudent to acquire the property.
Between 2.5% and 3.5%, it depends upon various situations, e.g.opportunity costs; the location / builders reputation / prospects of appreciation and the development aspects; career prospects etc.
Best article I have read on renting or buying.
No price is bigger than peace of mind 😂