Who doesn’t wish to have their own house? It’s one of the most coveted dreams for every individual. The real estate sector in Lucknow is booming at a tremendous rate, and its demand in recent years has spiked. Urbanization and high household incomes have been the primary growth factors. Now let’s discuss whether to own a flat or rent it anyway? High prices and interest rates make buying a flat or an apartment complicated. It’s not easy to make an upfront payment. Therefore, we seek Equitable Monthly Installments (EMI). Here comes the question: do you want to rent or buy 2BHK Flats in Lucknow?
You would have often heard, “instead of paying rent, you can use the rent amount to pay EMIs.” Both options have their pros and cons. The below points can help you figure this out.
Cons for buying a flat:
Capital appreciation: No doubt, investments in Real Estate do appreciate over some time. Also, make sure you choose the Real Estate companies in Lucknow which provide the best properties and will have a more significant capital appreciation.
Tax advantage: Well, having an asset helps you with income tax. Under sec 80C, the principal repayment of your home loan is eligible for deduction.
Rental income: If you own a 3BHK flat in Lucknow and it’s not occupied, it can be rented out to make some good money.
Rents: No scope for an increase in rentals.
Refurbish: You can renovate or make changes to the flat as per your needs, which you cannot do in a rented flat.
Cons of Renting a Flat:
Flexibility: In the initial stage of your career, you often change your job very hastily, and that can take you to a different city. So don’t buy a flat until you decide to settle down.
Rent lower than EMI: Renting is affordable for giving EMIs. The down payment is approximately 15-20% of the property value.
Expenditure on maintenance: It’s not your responsibility to maintain the rented property. It’s entirely the owner’s headache. The tenant is only responsible for minor maintenance. The homeowner looks after property tax. Also, while buying, the owner has to pay registration fees, stamp duty etc.
Both options have their merits but owning a flat would be a better choice than renting a flat. You can not ever recover the rental cost, a flat owner can always mortgage a property, but a tenant can’t mortgage a rental property. If you’re looking for a balance, get in touch with the best Real Estate companies in Lucknow with a legacy of trust and transparency.