The document discusses some key factors to consider when deciding between buying and renting a property. The major factors are the expected property appreciation in the area and the time a person plans to be in the property. Property appreciation can significantly impact whether buying is financially better than renting. For those only planning to stay a few years, renting may be preferable to avoid costs of repairs and utilities. While cost is also a consideration, the time spent in a property can outweigh differences in typical rent vs. mortgage payments. Thorough research is recommended to feel content with the buy vs. rent decision.

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BUYING VS RENTING
The line between buying and renting properties can often be a fine one for most people. The
benefits of buying and the attractive prospect of owning an asset often weigh against the less
restrictive nature of renting and the deferred liability of home repairs through renting. Making
the decision can depend on a range of factors, but perhaps the major among them is the
property appreciation seen in the area and the time you plan to be in the property.
Property Appreciation
Real estate property appreciation can be a difficult figure to dock in regards to a particular area.
A substantial amount of data and time is needed to evaluate the expected appreciation on a
certain property. We have all heard stories about flourishing areas that have flattened out and
seemingly depreciating areas turning into financial goldmine. Property appreciation plays a key
part in the difference between buying and renting. A quick rule of thumb states that the cost of
buying and then subsequently selling your home is about ten percent of the purchase price of
your home. That ten percent includes things like closing fees, commissions and other associated
costs. If your area does not appreciate by that amount, you probably will not make up the
difference.

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For those people that only plan to be in a particular area for a few years or even shorter, buying
a home does not often make sense when renting offers the flexibility to perhaps pay less and
escape some financial commitments on things like repairs and utilities, depending on your
rental contract.
Area Cost
Of course, cost of the area also plays a big part in the buying or renting decision. In some areas,
you may be able to purchase a particular home and pay INR 1 Lakh for your mortgage payment,
taxes and associated fees for a property that might otherwise rent for INR 40000 or so. While we
by no means suggest that cost is not an important factor, by not including it in the two biggest
factors contributing toward a buy or sell decision, time spent in a particular property can erase
many of the cost variations seen in a temporary stay at a property.
Of course, there will always be exceptions to every rule and your circumstances are unique to
you. If you have any apprehensions during the home-buying or renting process, consult a real
estate authority that can shed some light on the exact monetary situation you are looking at in
either case. It is important that you feel contented with your decision to buy or rent, so do the
best groundwork possible.