Dec 06, 2017
Rent OR Buy? Now that property prices are down
A common sentiment these days regarding real-estate is that one should buy a home now while property prices are down. I get frequent queries regarding this, and my advice has been that unless one anticipates settling down in a particular place one should rent rather than buy, and also see whether one is in the right place financially to do this.

A well thought-out article by Ashwini Sharma on Valueresearchonline lists key factors to help one decide, and his opening summary sets the tone for the rest of the article: “Financial planners insist that apart from price, there are various other factors to consider while buying a house. And if these factors matter to your situation in life, you may find that staying on rent may be more advantageous to you than buying a house now.”

Factors listed are: Flexibility, affordability, comfort, long-term commitment, other life goals,when to buy, stability of residence, financial stability, tax benefits, low home loan rates, creating an asset.
The conventional wisdom that, “rather than pay rent, I will pay the monthly EMI” needs to re-examined more carefully. A decision about this needs to be based on one’s life stage and life situation rather than truisms that may not apply to your circumstances.
Before deciding to buy or rent, do take a look at the article. It will help take the guesswork out of deciding whether you should or should not buy a home at this point in time.