Chennai, one of the busiest cities in the country with its vibrant IT sector and rapid economic development, has earned an enviable position in the residential market. Realizing the potential of the suburban markets in Chennai such as Sholinganallur, Thalambur, the Old Mahabalipuram region and Grand Southern Trunk Road, premium real estate builders have invested in these areas, turning them into some of the hottest residential areas in the country.
Due to increasing employment opportunities, there is a huge influx of people into the city who look for rented apartments or houses of their own. Whether you are buying or renting a property in Chennai, there is a lot to consider before you make up your mind.
Here is what you have to have in mind before buying or renting a property in Chennai.
Why Should You Buy a House in Chennai?
Economic Times lists Chennai as one of the most affordable cities in India to buy or rent a house. Chennai is also a good investment option for NRIs, especially when compared with Bangalore, as it will never cease to be a hot residential area. Investment is a feasible option if you have plans on settling in the city. Since Chennai will be a hot residential area for a long while, the depreciation of the property value in the future is highly unlikely, and an impressive return on investment is a certainty.
Thanks to increased job opportunities, people are migrating with their families to the city. The property value in the city tends to increase every year, which makes buying a safe bet to make in Chennai. Instead of buying a house under a single name, you can also buy a house under joint ownership which has plenty of advantages, like the ones listed here.
The insecurity with renting is higher as you could be asked to evacuate any time. Renewal of rental agreement is yet another hardship. There are higher chances of fluctuations in rental rates as opposed to fixed EMI rates that you are already aware of when you buy a house. Besides, you will only be returned the security deposit when you move out.
A property of your own will always guarantee stability and leave the choice of selling it for money to you. Buying a house is one of the best ways to reduce taxes. The monthly instalments get deducted from your total income, thus making you eligible for the subsidy from the government to buy your house. It is a better idea to pay for your own house in monthly instalments rather than paying rent.
Renting a House in Chennai
It is primarily the income of the family that should decide whether an apartment should be bought or rented. Renting a property is cheaper than making a purchase any day. Renting allows flexibility of movement if the job is not permanent or in case of transfers. For people who work from different locations or shift once in a while, it would be practical to go for rent. The cost of living in Chennai is high; therefore, buying an apartment will for sure be expensive.
Renting is a budget-friendly option because buying a house is four times as expensive as renting one. The rate of increase in the property price is always higher than rental rates in the city. If you buy an apartment, it will only give you small long-term returns whereas you save a lot more money if you rent a house. A simple monthly rental is easier to make rather than the down payment of the loan. As opposed to the property tax that is 1.5% of the value of the property and other repair and maintenance costs, your monthly rental payment is easier to make.
Home Loan EMIs might turn out to be liabilities in times of economic crises or busy life schedules. Renting a house is a way out of financial stresses like these. It allows people to live in a place they prefer at a lesser cost. Chennai has a wide range of rental options starting from studio apartments. There are countless platforms that list rental properties available in the city. People can access the list on their smartphones, which they can filter according to their needs and preferences.