Rent vs Buy: Unpacking the emotional and financial calculus in a volatile market

financialexpress.com:

Housing decisions balance emotional aspirations and pragmatic finances – but market fluctuations scramble norms. As housing price corrections mingle with rising mortgage rates, the intuitive “rent vs buy” debate grows more layered today. It pays to re-evaluate variables systematically despite instinctive urges.

Owning an asset that also provides living utility excites for emotional and social reasons. Yet assuming large loans in peak times brings risks too. Renting retains flexibility to upgrade homes with income booms or shift cities for work but building no ownership equity pinches in the long run. Navigating this dilemma relies on assessing individual priorities.

As pandemic-led disruptions ease, India’s residential scene witnesses demand rationalization and higher caution. Under-construction properties with delayed handovers lead to funding crunches for developers. Coupled with rising home loan interest rates damping affordability, price corrections surface in major metros provide negotiation headroom to buyers with pre-approved finance and immediate needs.

However, the current cycle itself remains adaptive. Benchmark rate hikes may near peaking out to balance inflation risks and cash-strained banks resist further home loan interest upticks although wariness lingers. Commodity costs easing takes developers pressure off too. Yet cautious sentiments dominate for now.

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This near-term flux understandably engenders “wait and watch” instincts on big-ticket home purchases. Yet, broader economic undercurrents also shape variables to assess. India’s growth uptrend offers income visibility to salaried professionals. Returns on alternate assets like