A report titled Rent vs Buy: a Personal Finance Perspective by ArthaYantra, company that provides personal finance services, shows that though traditionally buying a property is considered better compared with renting, the reality may not be so. Usually, buying a home is considered to be a means for financial security and creation of wealth whereas renting is treated as an expense. However, the report shows that renting a space can prove advantageous for a flexible lifestyle, gives the option of higher mobility and is easy on pocket when compared with the installment that needs to be paid when owning a home. The study analysed costs associated with owning a house and renting a house across eight cities. Taking into account various parameters such as current property price, current monthly rental value, current gross income and others, it seems that the decision between buying and selling varies from city to city.
Written By Arthayantra