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Pros and cons of renting a house

Renting a property is a convenient way of ensuring regular income. However, there is more to renting. Renting a house ensures a regular flow of income for the property. Here are some major advantages of renting a house:

• Allows more flexibility (a boon for those in transferable jobs)

• Requires no long-term commitment from the tenant

• Provides the opportunity of living in high- end areas (which may be beyond one’s purchase budget)

• Eases the relocation process vis-ã-vis the same for a house owner

• Mitigates need for insurance – the only insurance required is for personal belongings

• Lesser monetary investment leading to opening up options like investing in the stock market or saving for a house purchase

Disadvantages of Renting a House

Curtails freedom to renovate the property As engagement with the house owner is via the rental agent this leads to slower resolution of issues Nil opportunity for wealth creation or ROI No control over annual rental fluctuations which are directly affected by inflation Lack of security as there’s no guarantee that a lease will be renewed post-expiry.

Realty Broker Alpesh Mistry nicely wraps it up “Both owning and renting a property have their pros and cons. One needs to look at the situation in its entirety and compare the pluses and minuses along with one’s personal budget and aspirations in order to make a well-informed decision of what will suit one at that point of time.”

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