Is It Better To Buy A House Or To Rent In Bangalore

Choosing whether to buy or rent a house in Bangalore,, depends on buyer’s financial situation, and lifestyle, you are considering. With soaring property prices and increasing rental prices, investing or renting in Bangalore needs careful consideration.

Is it better to buy a house or to rent in Bangalore
Buy a House: Benefits

• Security: Buyers need not worry about an increase in rents or about lease renewals. They need not worry about the landlords who ask to vacate at any time.
• Customisation: If people live in their own house, they can customise their houses at any time as they wish. They can easily modify or renovate their houses.
• Long Term Investment: Buying a house in Bangalore is the best option as buyers can build wealth over time. Investing in upcoming properties like Prestige Evergreen in Whitefield is the best option to get high ROI in the future.
• Tax Benefits: Home loan offers tax deductions on principal (Sec 80C) and interest (Sec 24), and it will help to reduce the taxable income.

Rent a House: Benefits

• Low Upfront Costs: Renting a house needs a 2 to 6 months' rental amount in hand, while buying needs a 20% down payment along with registration charges.
• Mobility: Rent is the best option for people who relocate frequently for work.
• Avoid Long-Term Debt: Renting frees up money, and there are no EMIs to be paid, so that people can invest in any other savings.
• Stay near Workplace: Renting a house helps buyers to stay near their workplace, even if it is a prime area.

Buying vs renting a house in Bangalore

Buying a house needs high Upfront Costs like down payment, stamp duty, and interiors. Monthly EMIs have to be paid, and this will reduce financial flexibility, which poses major challenges during job loss. Also, while renting, tenants cannot modify the homes as they wish. Also, the rental value increases every year, which results in a problem for tenants. So, buying or renting is based on people’s decision, and they can decide after considering all the advantages and drawbacks of Bangalore real estate.

Rent or own house, which is better

To decide whether to buy or rent a house, you can use the Price-to-Rent Ratio of the area,

In prime areas like Whitefield, North Bangalore, Indira Nagar, and Sarjapur Road, the Price-to-Rent Ratio is 30+, and so renting is the best option. In emerging areas like Shettigere and Devanahalli, the Price-to-Rent Ratio is 20, and buyers can either rent or buy based on their needs. Areas like Hebbal and Hennur have a Price-to-Rent Ratio of 12, and it is the best option to buy a property.

Conclusion

Buy a house in Bangalore if you wish to settle in the city and seek long-term profit through investment. Rent if you wish to live in the city only for work or for studies. Refer Buying vs Renting a house calculator to see which choice matches your goals.