What are the Benefits of Staying on Rent?
* Rental homes are easier to finance on a budget
* You save on repair costs and get access to many amenities
* By renting you retain the freedom to relocate at any time
* Pay advances with Rental Deposit Loans of up to Rs.5 lakh
With younger generations being more willing to relocate to another city for improved career prospects, renting is a popular option for most people. As a student or a working professional, you too can identify apartments for rent and benefit from low-cost housing and enhanced mobility. Further, in the current economic climate, opting for furnished apartments for rent may be a more practical solution than buying a home. However, as you zero in on houses for rent in the locality you desire, bear in mind that the benefits of renting extend beyond pocket-friendly housing.
Read on to know why you should consider staying on rent.
You save on maintenance
On identifying, say, a suitable 1BHK apartment for rent, you’ll notice that as part of your agreement, maintenance is carried out by your landlord free of charge. So, while house owners must take care of repairs, such as plumbing issues, themselves, your landlord takes the responsibility on himself to handle the costs. That said, to benefit from this, you must ensure that these conditions are explicitly mentioned in your rental agreement. you can check the rent agreement Registration process.
You get free access to amenities
On surveying apartments for rent in mid- to up-scale properties, you’ll realise that part and parcel of the deal are a range of amenities. These include facilities like a swimming pool, clubhouse, kid’s playground and gym. Homeowners cannot enjoy all of this within their premises because of space constraints and the sheer magnitude of finance needed, say, to construct a swimming pool. Further, to access the rest, homeowners must pay membership fees.
You don’t have to take a massive secured loan
If you’re bent on avoiding large debt at this juncture in life, rent is probably the way to go. To purchase a flat, you’d need a budget of over Rs.30 lakh, and sometimes one that runs into crores. The way to finance it would be to make a down payment and take a home loan to cover the balance. When you identify a house for rent, on the other hand, you give yourself the option of managing your housing expenses with your existing income, and can save up for future plans of property purchase.
You make a lower initial investment
Even if you opt for a fully furnished apartment for rent, your investment is probably going to be within budget. Yes, there is a certain security deposit to be paid when you rent an apartment. However, even this amount should be sizeable less compared to the down payment you have to make while buying a home as home loan down payments can be even 20% of the properties price. So, unless your landlord requires a humongous advance, you’ll find renting an apartment a more feasible option.
You enjoy a great deal of mobility
One of the major reasons you should prefer renting over buying a home is because it is a no-strings-attached situation. Once the lease tenor is over, you can just move to another location for a better job opportunity or for your children’s education. However, no matter the reason, selling a house is very exhausting and, at times, unsuccessful, hindering you from moving anywhere else and investing in a new property. Therefore, renting is a good option for you if your job demands frequent relocation and extensive travelling.
You can claim income tax benefits
If you are a salaried individual, then there’s a good chance that you have a House Rent Allowance (HRA) component within your salary structure. Since you are paying rent then you can claim HRA to lower your tax liability. A provision for your HRA to be exempted, in part or full, is made by Section 10 (13A) of the IT Act. Homeowners, on the other hand, even if they have an HRA component in their salary, cannot claim a deduction.
Now that you know how renting a house can be a good move, get a Bajaj Finserv Rental Deposit Loan and easily hunt for the ideal apartment without worrying about expenses like a mandatory rent deposit or brokerage. Bajaj Finserv offers financing of up to Rs.5 lakh, which you can repay over a tenor of up to 36 months to help you with these expenses.
What’s more, you can avail of the unique Flexi Hybrid facility, to withdraw amounts in parts from the sanctioned amount to meet costs such as advance rent or security deposit. You can do so without fresh applications and interest is only applied to the withdrawn amount and not the total loan amount. Additionally, you can choose to pay interest-only EMIs through the term and pay the principal amount at the end of the tenor.
If you’re close to signing a rental deal, check your pre-approved offer from Bajaj Finserv. Doing so gives you instant approval through a customised loan, streamlines the application process and paves the way for a 24-hour loan disbursal so you can rent the ideal home in your preferred location.