Is Bangalore cheaper to rent or buy a house?

Everybody dreams about owning a home. However, now that property values are growing higher, the question still emerges as to whether it is cheaper to purchase or rent a building. There has been a flurry of reasons against owning and renting a home, and also before agreeing on it, you will have to weigh all the appropriate angles.

Is Bangalore cheaper to rent or buy a house?

Buying vs Leasing

In order to help one determine whether renting is easier than owning a house at a given time or vice versa, several ideas have been put out. One thumb rule states that if the property's rent per annum is below 2 percent of the value of the property, then renting could be a safer option. If you pay more than that as a deposit, so it is advisable to go to purchase as the payable equated monthly installment (EMI) will be more fruitful than paying a large rent. Another rule of thumb states that you can only multiply your monthly rent by 240. If you can purchase a house for less than that, then in the long-term, investing is probably easier. A house is an asset, and to build a secure asset for you, the down payment and EMIs would go a long way. No matter how many thumb rules are conveyed or how many indices are produced, before deciding, it is always advisable to judge your respective situation.

Few points to consider when you purchase a house:

  • How long are you planning on living in that place? Renting could be a safer choice if your work is transferable since it allows you versatility. Usually, it takes a house nearly 5-6 years to break even on a sale.
  • The property market in the area where you are looking to purchase a home. Renting could be a safer choice in the event of a super-expensive housing market.
  • Household financial condition: If the household keeps surplus cash safely, then committing the EMI is simpler. Investment potential: Returns equivalent to loan items are generated by a residential house or an office site.
  • It is important to take into account what you're going to do with the money you earn from renting instead of buying.

 A house in Bangalore?

Compared to markets like Mumbai or Delhi, where prices have shot up astronomically over the years, the Bangalore property market is still steady. Therefore, it is advisable to spend the rental sum in Bangalore as an EMI to buy a home. You must, select the areas that are ideal for buying or investing in a home. For property investment, Bangalore North, Bangalore South, Bangalore East, and Bangalore West are advisable. In particular, the prime areas for buying a house are Bangalore East and Bangalore North, as rental rates are shooting up at a higher rate than home prices. 
Thereby I conclude with a quote,

“If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it.” — Steve Jobs