Bangalore properties on rent have been observing an increasing demand from IT professionals, expats, NRIs, HNIs and others who are keen to move to the Garden City. Renting is an affordable alternative if one is short of funds or is looking for flexibility or is staying in the city only for a short while. However, understanding the pitfalls and disadvantages of the same can help people make educated choices for their families and weigh their options too.
Absence of equity
One of the biggest disadvantages of renting Bangalore properties on rent is that you won’t be gathering any equity of sorts. The
monthly rent payments are neither savings nor are they being invested; in fact, they are further adding to the landlord’s equity by paying off his debt or earning him income. Home ownership, on the other hand, is an equitable long–term investment and a financial cushion for life. Every EMI you pay towards the loan pays off your debt a little more and brings you closer to safety, security and building your wealth.
Insecurity and instability
Beyond your lease, renting apartments offer unpredictability, instability and insecurity. Even if you have signed a year or two year – long lease, there is no guarantee that it will get renewed. The landlord might wish to rent it out to someone else, or the house might even get foreclosed due to imprudence on the landlord’s part. Additionally, one might not be able to renew on the same terms and conditions, and the renewed lease might come with more stipulations or more rent than you anticipated. Bottom line is that there is no stability when one rents a house.
Lack of freedom and flexibility
Most of the landlords do not allow for any kind of changes on the property, neither remodelling nor decorative. Hence, renters end up adjusting themselves to the homes rather than making the homes more personalized, efficient and liveable according to their lifestyle. In fact, even if renters did get the permission, any money spent on improving the house goes towards the landlord’s investment and wealth, not the renters. Home ownership gives flexibility and freedom in many ways, including customizing a space and making the house more valuable through remodelling.
There will be mounting restrictions when you live in Bangalore properties for rent. While some landlords have the “No pets” rule, there are yet others who limit the number of days that friends and guests can visit you – landlord’s house, landlord’s rules.
Lack of financial incentives
Renting homes does not give the renters any kind of tax incentives of breaks. Homeownership, on the other hand, gets people lots of tax incentives, apart from building wealth and equity. For instance, interest on the home loan is deductible from property taxes.
What’s more, the cost of moving every time one relocates is much more than one would pay towards the loan for homeownership. Hence, one should carefully consider the above points before considering renting a home.
Shriram Sameeksha – Affordable homes for all budgets
Shriram Signiaa – A dream house that you cannot miss
Shriram Smrithi – A wise investment that appreciates every year
Chirping Woods – A idyllic bird haven amidst lovely woods
Shriram Suhaana - Luxury villas and apartments for sale
Shriram Summitt – Make the right move now and book your space