Young people today are inclined more towards renting a flat rather than buying one. But the older you are, the more you know, owning your home and especially a flat in Mumbai is one of the best assets and investments you can make. Not only has purchasing a home been a historically good investment, but it also solves any concerns you may have related to the safety, hygiene, health, and security of your family.
The Covid-19 pandemic has made us realise that owning an apartment is way better than dealing with the uncertainties and difficulties of living in rented accommodation. When you own your own home, you don’t have to worry about monthly rent payments or changing rent payments every year. You don’t have to worry about a landlord or constant negotiations on problems or improvements needed. Everything is in your own control.
In addition, people are realising the importance of having real estate as an asset in their investment basket. It is a more reliable option offering steady returns compared to the stock market that comes with heightened risks. There are also many tax benefits to owning real estate that you can take advantage of when you buy your home.
Greater privacy & stability: Everyone has a dream to renovate their own home as per his or her choice. The colour, the texture, the paintings, even the placement of walls and the size of rooms can be customized when you own your own home. If you fancy an open kitchen instead of a closed one or vice versa you can make changes that renters can only dream of. When you own your property, you can upgrade, renovate or improve the property to your liking, a benefit that renters don’t enjoy. In the current pandemic situation, unlike renters, homeowners do not have to worry about the rent. No homeowner needs to worry about their rent being increased or their landlord simply not wanting to renew their lease. Homeowners have the stability of knowing their home is theirs to stay in for as long as they want.
Long Term Investments: Property prices, especially in Mumbai have gone up exponentially over the years. While all asset classes, whether stocks, bonds or property can go up from time to time, property prices have generally been more stable than stock prices and provide great returns for investors and homeowners. If you are fortunate enough to be able to afford a second property, you can always rent out your first property to increase your cash flow. Property can provide benefits in terms of increased value through appreciation and increased cash flow through the collection of rent. Renters do not enjoy the benefit of the rising home prices, but homeowners do. A home is an asset that can neither be lost, nor stolen. The home loan will eventually stop once it is cleared, but the rent will continue for a lifetime which will be nothing but an unwanted expense.
Choice Of Location: Homeowners should look to buy property with an eye towards the future. The location you choose should be one you are happy to live in now, but also one where you see a high chance of improvement in the next few years and even decades. We highly recommend looking into the suburbs in the northern part of Mumbai, especially Dahisar and Borivali, have seen their prices continue to increase over the past decade. They have great connectivity to the rest of the city and are constantly improving. New buildings are being developed and there are more and better malls, hospitals and schools all the time. Renters always need to worry about their next move, homeowners never do.
Clearly there are a lot of benefits to buying a home, BUT…
Purchasing a home is one of the most important and best decisions you can make in your life. Make sure you take into consideration all the pros and cons of buying your first or second home. Check out our blog on the Pros and Cons of buying your own home to learn more about the Home Buying Process.