- Taking a house on rent gives you ample mobility
- However, renting a house comes with many costs
- You can address such expenses with a Rental Deposit Loan
- Bajaj Finserv’s Rental Deposit Loan offers up to Rs.5 lakh
While advertisements announcing apartments for rent and purchase may surround you, the decision to buy or rent is one that requires careful consideration. This is because buying and renting, while serving the same purpose, are very different. To decide whether you should pick home ownership or identify houses for rent, it’s important to understand both options and their advantages in detail.
When should you buy a house?
Purchasing a house of your own makes sense if relocation is a long-term plan. If you’re likely to work in a city for 10+ years, for instance, and have the necessary finances, owning a home is a viable option. This is especially true in case you are well settled, in your late 20s or early 30s, as you have time on your hand to service EMIs comfortably. In fact, while the price of a 1BHK flat on rent may increase 10-fold over this period, your home loan EMIs will remain constant through the repayment term.
In a nutshell, the advantages of buying a house are as follows:
- You add to your asset portfolio when you purchase a property in your name
- You do not have to worry about increasing rental costs
- You are aware of your EMIs beforehand and can manage your finances accordingly
- You can give your house on rent and thereby generate income through it
- You can mortgage your home for a loan if the need arises
When should you rent a house?
However, if relocation is a short-term prospect or if you’re unsure about whether you want to put down roots in a particular city, it’s best to identify houses for rent until you do. For instance, if you’re working on a project that is likely to wrap up in 3 years, you can simply opt for a 2 BHK house for rent for yourself and your family. At the end of the 3-year term, determine if you’d like to continue staying in the city and take a decision accordingly. Moreover, if you’re on a budget and aren’t financially equipped to buy a home yet, this is the best option for you.
In a nutshell, the advantages of renting a house are as follows:
- You can manage your housing needs even when on a budget
- You avoid the hassle of saving for a large down payment
- You can shift to a different city or country more easily if you get a better job opportunity
- You eliminate any and all repair and maintenance costs
- You get access to common facilities and amenities offered by the housing complex
- You have less responsibility towards the property
As is evident, there is no single right answer. What you ought to do depends on your individual circumstances. However, if you think that renting an apartment is the best move for you, do take into account the total cost of doing so before you finalize a home. Typically, you are required to pay a security deposit, which often runs into lakhs, along with brokerage. In addition, you’re likely to have to pay packers and movers, even if you opt for furnished apartments for rent.
To meet these costs without taking on any financial stress, consider Bajaj Finserv’s Rental Deposit Loan. It offers funding up to Rs.5 lakh, which you can repay over a tenor of up to 36 months. The loan helps you boost your finances when you’re looking for apartments for rent, as you can use the loan for not only the security deposit, but also for brokerage fees and other auxiliary costs such as purchasing furniture and furnishings.
Further, in case your funding requirements demand flexibility, you can sign on for the Flexi Hybrid facility. Make withdrawals from your sanction on the go, paying interest only on the loan amount that you end up using. The feature also facilitates interest-only EMI payments during the tenor, with the option of paying the principal later. In fact, you can even make use of part-prepayments to close your rental deposit loan before the tenor is up.
Moreover, this loan offers easy eligibility, quick processing and is disbursed within 24 hours of document verification. What’s more, you can also make use of doorstep services for the drafting and registration of your rent agreement! To apply for Bajaj Finserv’s Rental Deposit Loan, simply fill an with basic details. Optionally, check your pre-approved offer for an instant, customized deal.