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Buying Vs Renting A New Property In Ahmedabad - The Right Choice

Different people, different needs. The basic mantra for buying or renting homes in any city is the kind of stability one is looking for in a city. But as mentioned, people are not always looking to buy 2bhk flats as soon as they find a stable job. Renting is in trend among youngsters who are always on the move. However, the traditional sense of pride attached with owning a home is still there, and especially in a city like Ahmedabad that is rooted to its traditions.

A Summary For Those Who Lack Patience

You’ll find a detailed discussion below in the article about buying vs renting and how much you can save with either. However, if you want a short advice, here it is- If the city is your home or you plan to make it your home in the long run, owning 2bhk or 3bhk flats would be the best bet. However, if you are in a transitory phase and not really sure of your location in the coming 5 years, it is better to rent. Don’t buy property unless you are pretty certain of your livelihood in that place or you have a hefty amount you need to invest. Other than that, buying a home is always a better option.

The Advantages Associated With Buying Property

• Mental security and pride that comes with buying a home
• Freedom from the ever increasing rent of 2bhk & 3bhk flats.
• A sense of privacy as you’re not answerable to a landlord.
• Easier economic planning with predictable future costs. As when you buy a new property you’re aware of the amount and duration of EMI.

How To Decide?

Ahmedabad is a booming real estate market. So whether buying or renting, finding a new property in Ahmedabad won’t be difficult for you. Renting 2bhk flats or 3bhk flats is easy in the city if you’re married, but then also to get a home in the right location you must pay a substantial rent. As mentioned above, if you are in for the long haul just buy a home.

Buying A Home- The Long Term Gain

Property Price & Rent

Let’s assume you have a Rs 50,000 salary right now and you find a well-furnished new property in Ahmedabad after looking for many 3bhk flats online. Your rent is 20,000 with a 5% annual increment. And if you were to buy the same 3 bhk flat, it would have cost you Rs 50 lakhs with a 5% appreciation rate.

Loan

Let’s say to buy that property you’ll have to provide Rs 10 lakhs as a down payment take a loan of 40 lakhs for 20 years.

Outcome

If you are planning a long-term stay in the city, buying a home will save you approx. Rs 35 lakhs in 20 years and will become more profitable than renting in 16 years.