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Buying Vs renting a property: Buying is the clear winner' says Aakash Patel, Director - Atul Projects

Is it a good idea to buy a home or be patient with the rental?

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Buying Vs renting a property: Buying is the clear winner' says Aakash Patel, Director - Atul Projects
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When it comes to setting up accommodation in any place in the world, you have two options - buying one outright or taking up a rental. It's quite difficult for anyone to buy a house outright in a city like Mumbai, so the next best option is to take up a rental. For at least three decades, living on the rent was normal in Mumbai. Post-1990, with the Government stepping in with various plans, and an entire generation wanting to make Mumbai it's home', the real estate boom saw many more homes come up in the nineties. Even today, several construction companies have plans to set up complexes all over Mumbai.

But what does experience say? Is it a good idea to buy a home or be patient with the rental? Mr. Aakash Patel, the director of Atul Projects, weighs in.

"The rental home is not a good idea today. Maybe, a decade prior, when accommodation was available and putting up people on rent was not as commercial as it is now, it was, but not today."

"A major part of the rental model was that people had big bungalows in Mumbai and allowed people and families to stay there until they got a footing in the city. This was more of a verbal agreement between them, and they lived like good friends, if not families."

He continued, "This is no longer the case. To take up residence on a rental basis, you need to pay a heavy deposit, and then you need to pay monthly rent - and even with all this, in some cases, you can't even smack a nail in the wall. It's all become very commercial."

He said, "The issue is that people looking for rental don't read the agreement with interest. Some of the agreements still say that the tenant must hand over the key to the landlord at specific times every day!'

"Maybe the new generation will understand how temporary their accommodation is if they plan to go on a rental basis," he said, on a lighter note.

"But look at this day, the rentals are increasing day by day. If you do the math, you'll see that the rental is almost equal to the EMI if you'd take up a home loan."

"I agree that a decade ago, it was difficult to get a home loan. But take a drive down Mumbai today and you will see every bank offering home loans, and the process is pretty simple as well."

He continued "I also agree that the address one stays is a matter of prestige today. So, many decide to live on a rental basis at a prestigious place, because they aren't in a financial condition to even get a home loan for that place."

"Vanity Living is a thing and unless you have the money, you will always be in a fix with it. Many builders are now offering spacious, better houses in what we earlier called the suburbs of Mumbai. Atul Projects is coming up with an amazing project that’s offering a luxe experience."

"All they need to do is get practical about life and take some time to get a footing in the City of Dreams, post that, everything's possible." He signed off.

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