Buying a home in the financial capital of India is every individual’s dream. The prices here are amongst the costliest in country and many people are not even able to buy a studio apartment in their entire lifetime, leave alone buying penthouses, bungalows, row houses or villas in Mumbai. Nevertheless, there is no happiness in the worldthat can substitute the joy of having an own shelter and hence people need to carefully weigh the advantages and drawbacks of both, buying and renting based on their individual capabilities before finalizing the decision –
Purchasing an apartment in Mumbai offers several advantages
There is no doubting a fact that buying an apartment in the capital city of Mumbai offers several advantages. This includes:
- Sense of accomplishment of possessing a property
- The asset acts as an hedge against rising inflation, economic uncertainties and political turmoil
- Shelter for lifetime
- Can be used to raise fund in old age by way of reverse mortgage
- Tax exemptions on both principal and interest amount repayed on home loans
- Higher price appreciation since the demand for home here is much more than the supply. Scarcity of land and excellent infrastructure has meant that the prices will only rise further
The complete information on all kinds of real estate assets in this island city is readily available on Housing.com, India’s leading web portal that facilitates buying, selling and renting of properties across India.
Renting an accommodation in Mumbai is easier than buying a home
On analyzing the prevailing market rates for owning a home versus renting a flat here, it is clear that renting an accommodation in this metropolitan region is easier than purchasing. An average cost of a good 1 BHK flat in Mumbai is anywhere in the range of 70 to 80 lakh rupees. The down payment for home valuing 80 lakh rupees comes to around 20 lakh rupees including the cost of registration, stamp duty, service tax, VAT, etc., and the home loan amount works to around 64 lakhs. The equated monthly installment (EMI) for this amount comes to around 63,000 rupees for the duration of 20 years at the current rate of 10.25%. However, the monthly rental for 1 BHK in Mumbai is between 15 to 25 thousand rupees and thus it is much easier to rent an apartment here than buying it.
Decision to buy or rent depends on personal capabilities
Finally the decision to rent or buy depends on personal abilities and this includes net monthly salary, existing EMIs, nature of employment and the future prospects in terms of profession. Hence, an individual should carefully take into account all factors before executing thefinal transaction, especially considering that the prices of properties here are higher. This can be substantiated by the recent news that states – buying prime property or villas in Mumbai is costlier than purchasing a luxury residence in Dubai.
http://profit.ndtv.com/budget/mumbai-costlier-than-dubai-for-buying-prime-property-report-745761
For a stable future and comfortable life, it is important for people not to exceed their capacities.
