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Pros & Cons of buying vs renting a Property

October 6, 2017

Post RERA and GST, the real estate sector has witnessed steady growth in sales and revenue. However, the age-old question of whether buying a property or renting one is the economical way to go still runs strong in many group discussions and friendly banter. Potential home buyers love the thought of owning a home but dread the high property rates that come with it. On the other hand, tenants love the flexibility involved in renting out a house but need to be wary of moody landlords who may ask them to vacate with a mere three-month notice period. So, which option is better? Renting or buying? Let’s find out.


Pros of renting a property

  • Renting a property gives you the freedom of flexibility. You can choose the property based on your personal choices. With a little extra rent, you can even afford a posh locality and an extra bedroom – something which could be too much of a luxury if you were planning to buy a property.
  • With a rental plan, all your savings will not be tied down to a single investment. This is especially true if you are at a young age and can use the savings for other options like education, travel or buying a new car. Additionally, by distributing your investments, you will be reducing the risk of spending all your money on one big asset.


Cons of renting a property

  • The steady increase in inflation rates will only lead to higher rental rates which is a huge drawback when it comes to renting an apartment. Furthermore, as the years pass by, you will feel the burden of a monthly chunk of money going towards rent when the house is not even under your ownership.
  • Renting a property comes with the con of being asked to vacate anytime. Even if you are completely settled in your rented home and love your neighbours and locality, your landlord has the authority to ask you to vacate with a short notice period. Finding another house with the same benefits may not be easy.


Pros of buying a property

  • With an increased demand in ready-to-occupy apartments, investing in real estate is a dream for many families. Contrary to renting a house, buying a property gives you stability. You will be living in your own home and can move out as per your preferences.
  • You also have the freedom to live as you wish. You can renovate your property, add a new shade of paint, seal a connecting door or break down a separating wall as per your liking.
  • Whether you are buying an apartment or a villa, investing in a house is your best bet. Property prices only increase over time giving you a higher return on investment. Better yet, you can buy a property in a developing locality and enjoy the returns as the neighbourhood develops. Make sure you check out our blog on the top 7 residential localities in Bangalore for a list of stellar neighbourhoods to invest in.
  • Additionally, you can always rent the property out for extra monthly income or use the cash flow to pay off your home loan EMI.


Cons of buying a property

  • Real estate investment is a long-term financial plan. Not only will you reap the benefits after an initial buffer period, you will also have to be prepared to take up the ongoing expense of maintaining the house.
  • In spite of flexible home loan plans, in the form of fixed home loans and floating home loans, the high rates of interest make potential home buyers rethink about the monthly instalments they will be obliged to pay.
  • By investing in real estate, all your life savings will be stuck in one asset making it harder to invest in other mediums like education, gold or shares.
  • It is advisable to invest in real estate only if you are planning to reside in that city for more than ten to fifteen years as it is a long-term investment.


With these pros and cons of buying a property or renting one, the ball is in your court when it comes to scheduling your investment plans. If you are a first time home buyer, check out our extensive blogs on tips for first-time home buyers in India and how to increase your CIBIL score for a home loan application for a detailed insight on investing in real estate. Whether you are planning to invest or pay rent, head out to the Brigade Group for a plethora of top-notch projects with world-class amenities and facilities and treat your family to luxurious living. 


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