Should I Rent or Buy as a young adult?

If you are in your 20s, one of the crucial decisions that you are pondering is your living situation. As Indian children, we have always learned about the importance of having our own home. Our parents have built houses from their hard work. And they have taught us how essential it is to have your own. 

But, as a young adult, you may just be starting your career. If you are in your late 20s, you may be building a new life with a partner or planning to do so. Hence, buying a house or renting one is a crucial question that you must ask yourself. Following are a few tips to help you understand the benefits of buying and renting a North Goa rental house as a young adult in their 20s.

Benefits of renting a house in the 20s

• Flexibility – in the 20s, one is still trying to figure out their careers and life paths. There is a need for higher flexibility to capture work opportunities when they arrive. If one gets a work opportunity to move to a different city or a country, a home should not become a barrier. 2 BHK flats on rent in Hyderabad would provide you with such flexibility. You can focus on your work and move wherever your life path takes you. 

• Low monthly cost – renting is cheaper than buying. It is undeniable that in the early 20s, most individuals begin working and establishing their income source. The income is not usually high and barely enough to cope with the essential expenses. Hence, bank EMIs should not restrict you. Rents yield low costs every month and are manageable with a low salary.

• Taxations and maintenance – in the 20s, we barely understand income tax returns and how to file them. Buying a property involves several complications and complex procedures. For example, you need to pay house tax. Also, buying a house means that you would be responsible for handling the maintenance costs, which can be low or high. Such added expenses can be a burden at such a young age. A North Goa rental house will keep you away from such expenses.

• Down payment – even if you buy a house at a young age on loan, you still need to make a down payment. The value of the down payment would most likely be 10-20% of the total value, depending on the bank requirements and practices at the time. Saving such a huge amount can be difficult in a short time. But, renting does not require any down payment. Only a security deposit needs to be paid, which is a few thousand rupees. 

Benefits of buying a house in your 20s 

There may be several benefits of renting a house in the 20s. But there are also many benefits of buying a property at such early age. 

• Smaller EMIs – when you buy a house at an early age, you can get a loan for a longer duration. As a result, your monthly EMI value would be less and almost equivalent to what you pay in rent. Banks are also more confident and eager to provide loans to youngsters who can pay them off through decades. Hence, you would not have to pay huge EMIs on a monthly basis. 

• Asset building – buying a house means building an asset. There are indeed responsibilities and expenditures when you buy a property. But, you would also build an asset at a very young age. In corporate jobs, security and pensions are no longer available. Hence, it is necessary to have assets for old age. 

• Profitable investment – youngsters worry about the fixed and huge EMIs to be paid towards home loans while buying a house. However, a property is not a liability but rather an asset. It can generate income and profitability for you through the appreciation rate. Real Estate rates always grow in the long run and can always be sold at a profit. 

• Rent it out – if flexibility is a concern for you, you must remember that you can always rent your flat or house. If you need to move to a different city or a different country, there is no reason for a flat to restrict you. People are always looking for 2 BHK flats on rent in Hyderabad. Renting your house would add a source of income. Also, the rent received can be directly paid towards the home loan while you continue to build your career in a different part of the world. 

Conclusion 

At a young age, there are several decisions about our lives in the future. However, buying or renting a flat is not a decision that you should make without proper information and research. Both these practices are possible in the 20s, and age is not a bar to deciding whether to rent or buy. But, you should plan your future and decide how you would afford to buy a house. Understanding the benefits of renting and buying would help in setting your priorities and making the right decision for yourself. Renting is more flexible and easier, where less money needs to be paid every month compared to loan EMIs. But, there are benefits of buying a flat as well, such as adding an asset to your portfolio and making a profitable investment. You must also assess your potential career growth in the coming years before making this decision.