Why Buying A 1 Bhk Flat in Mumbai is A Better Decision Than Renting One?
Why Buying A 1 Bhk Flat in Mumbai is A Better Decision Than Renting One?

Mumbai being one of the four busy metros and the financial capital of the country has become a real estate hotspot. Owning a flat in Mumbai is a dream of many, but the skyrocketing property prices often act as a deterrent. More often than not, people tend to rent a 1 bhk flat in Mumbai rather than buying it. Which option is more feasible? Should you look for a 1 bhk flat in Mumbai for sale or, should you rent it? Let’s have a discussion here.

Buying vs Renting a 1 bhk flat in Mumbai: What should you do?

Both decisions would come with financial liabilities so, you cannot simply take the decision randomly. You must have some valid reasons backing the decision you take. You have to delve deeper to understand what works for you. Here are some pointers that might help you reach a decision.

Your ties to the city:

If you are a Mumbaikar who has family ties and/or, professional ties which are likely to thrive in this city in years to come, buying a flat would be a viable option for you, given you have the financial backing to do so.

On the other hand, if you are here in the city for your career purposes for a couple of years, and do not have any plans of settling down because you want to relocate then renting is probably a smarter option for you.  

However, if you have the means to invest in a 1 bhk in Dadar then you might reconsider your decision, because it is going to be your asset after all. Even if you do not stay in the city, you can rent it out or, you might also sell it and get a good ROI. The demand for residential apartments in a city like Mumbai will only go up. However, make sure you select a prime location for your flat.

Now let’s move on to other points considering you have the reasons and the means to buy a flat in Mumbai.

Peace of mind:

It is needless to point out that having your own place, even if it’s a 1 bhk in Lower Parel, is of paramount importance as you can be the owner of the property. When you stay on rent, you do not have any ownership, you have to abide by the rules set by the landlord.

 Furthermore, if you miss rents due to some financial emergency you will get evicted.  During the recent pandemic, many people have had to encounter financial uncertainties due to pay cuts and even job loss. The recent upheaval stressed the importance of having a secure shelter which only a home can offer.

Staying on rent also comes with lack of freedom, as you are not allowed to make any modifications to your place, if anything needs repairing you have to notify the landlord and wait till it gets fixed.

Looking for a1 bhk flat in Mumbai for salemakes sense, as ownership gives you the peace of mind. There is no worry about getting evicted and finding another place to stay, and if anything needs repairing or, modifying you get to call the shots.

Financially a viable option:

When you are debating whether to buy or, rent a 1 bhk in Dadar, you have to keep the financial aspect in mind. Renting a flat means you will be shelling out a significant amount of money every month, and since the city is Mumbai the rent amount is bound to be pretty high. You will also have to deal with rent hikes.

You also have to deposit a hefty amount of money as the security deposit when you rent. You get the money back once the lease expires and you vacate the flat. This deposit money stays stagnant, it doesn’t grow.

Now, if you start looking for a1 bhk flat in Mumbai for sale,you couldpurchase the flat by making a down payment, and the amount you are paying as a rent could be paid as the EMI amount. You will not only be saving money, but you will also be investing that amount in an asset which has a high ROI. Getting your own place means you are letting go of a big financial burden every month.

 A home gives you stability:

Those who want to build their future in Mumbai, owning a home can help them achieve the stability they desire. When you stay on rent, the rent amount will increase after a certain time, so would the living costs.

Furthermore, once your lease expires there is not a guarantee that there will be a renewal, and a renewal will inevitably come with a rent hike. When you live from rent to rent, you are only wasting money; on the other hand, if you decide to own a place you will become more cautious with your money matters.

You can learn about the available payment schemes and take advantage of them; you can make a down payment and move in a 1 bhk in Lower Parel. You can take this step early in your life, and by the time you reach middle age, you will have paid off the entire amount and will be the proud owner of a flat in Mumbai. If you have plans of getting married, or, extending your family this move can help you invest your money in a constructive way, because when you are renting you are just letting the money go.

Conclusion:  Buying vs renting a 1 bhk in Mumbai is a discussion where you need to pay close attention to your personal and financial situations, as well as your future ambitions. Ownership of a property comes with liabilities, but your flat is also going to be your asset. Renting might free you from responsibilities like property maintenance, but it will eventually burn a hole in your finances.  Investing in a property makes more sense because the property price will go up and you also make a way for passive income even if you choose to relocate in the future.

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Written by The Baya Company