Chennai has developed such a great amount in the recent years. Education and profession prospects are the real reason for moving into this city. Chennai draws in a plenteous number of individuals to move into this city for its cost reasonableness and housing as well. Families who need to settle down in Chennai are the real good reason for expanding populace in this city. This has brought a huge demand, whether to buy or rent in Chennai city.
How is the marketplace in Chennai?
OMR is the affordable sector for a considerable share in Chennai. The OMR stretch, the GST road and the localities in and around the north-western spots of the city are in huge demand for rental housing. An area like OMR, Anna Nagar, Pallavaram, Porur, and Oragadam have a great yielding growth this, increased when compared to other areas in Chennai. Chennai is in a huge growth in the realty sector, how good is it buying a house in Chennai?
Weigh your options with the below-set example:
Due to the growing urbanization, this can cause an uncertain decision making when it comes to purchasing or renting a house in Chennai.
The swing from being a renter to a homeowner is a difficult one, both emotionally and financially. What are the factors to be considered before you weigh the options to make your decision?
Age: 30 years old
Gross yearly: 9 lakh
Duration of the stay: 10 years
#There’s a 2-BHK apartment which comes in a month to month rent of Rs. 25,000. The yearly increase in rent is 6%.
#There’s a 2-BHK Villa available to be purchased which comes with a price tag of Rs. 52 lakh
Weighing these things in mind, buying is better than staying on rent for a longer period of 10 years. Because considering the EMI and down payment, you would be paying, it is only after the 10th year, and you’d gain money on renting it. If your stay is less than 10 years, it would be better to stay as a tenant instead of buying a house.
Before you buy a house, consider these factors before you make a smart choice.
Got a backup plan?
Apartments and villas in OMR would be quite expensive, which can yet be affordable for a middle-class buyer. If you do not pay for it in total in buying a house, you are probably going to have to avail a home loan. Generally, Banks and lenders would lend you around 80-90 percent of the total cost of the property. The outstanding 10-20 percent you must add to buy a house. So make sure you have an extra amount to produce for your down payment.
What is Debt-to-Income Ratio?
It is a comparative measure of your debt payments to your overall income. DTI is the measurement of your ability to pay the monthly payments and repay debts. It is calculated by dividing the total of monthly payments by gross income of a month which is expressed in %. If you are availing a loan, lenders examine this ratio to ensure you pay your monthly debts regularly without fail. Preferably, this ratio should be below 50 percent.
What are the additional expenses?
Remember to think about the property tax, annual repairs, insurance, maintenance and other costs when you opt for home buying. Make sure you have adequate funds to take responsibility for all these?
Have you thought of the proximity and mobility?
You ought to give on mobility when you prefer to buy a home. This could be a major issue if you shift jobs or organization which is located far away from your home. Although you have so many possible means to deal with it, this is something which you must definitely consider while buying home.
Also, check out the prices of the location where you’d like to buy a property and the future resale potential.
Staying as a tenant on rent
If you opt to rent a house, there are a few important things to think to decide.
*The security deposit, usually known as advance to be paid to the house owner.
*The rent payment for every month.
*The charges to pay to the broker each time you shift a house.
*The annual increase in rent and the frequent fluctuations in managing finance.
All things considered, there is an array of factors to be considered while weighing your decisions on home buying or renting. In conclusion, real estate is a good property asset to own and can be a protection while unwelcome situations in life. On the other hand, you should not buy a property merely based on investment. A careful study of personal and potential factors should give hand to determine to buy a house or continue to stay as a tenant.
Buying a house in best residential locations of Chennai like OMR, Anna Nagar, Porur, and Oragadam would be a competitive journey because there is an infinite number of apartments and Individual house for sale in OMR, Anna Nagar and so on. But, owning a home in these best locations adds value to your property and you as well.