The most important factors in deciding this is one’s budget and the availability of ready finance. Remember, interest rates are high and so are rentals in some markets.
An apartment worth Rs 2 crore in a Mumbai suburb with a rental yield of about 2 percent per annum would cost Rs 4 lakh per year, or over Rs 33,300 a month, in rent.
Renting the same apartment for years may result in paying out Rs 2 crore over 50 years instead of shelling out the entire amount in one go.
Experts say most homebuyers opt for home loans, which significantly adds to the cost of ownership and if one were to account for the interest cost as part of overall home ownership cost, the period would rise to 30-35 years of rental outgo.
If you have decided to invest in a property, estimate the total cost of ownership, including parking charges, stamp duty, registration charges, and interiors. Take into account the monthly maintenance charges that you may have to pay.