Monday, 15 September 2014

Why People Prefer Renting Than Buying Houses?

Bangalore is experiencing a boom in the IT industry and this is attracting thousands of IT professionals and students each year in search of career opportunities. This is turn is creating a huge demand for accommodation with the professionals and students seeking different kinds of houses to live in while working in Bangalore. 95% of the professionals and students prefer to search for flats for rent in Marathahalli and Whitefield among other posh areas, thus leading to the question; “why do people prefer renting accommodation rather than buying it?” Well, there are many reasons linked this and the following are the main reasons linked to this question.

Cheaper over the short term perspective
For a professional or student intending to visit, work or study in Bangalore for a few years, it’s not worthwhile to buy a house or apartment. Thus, the majority will prefer to simply get a house for rent in Whitefield Bangalore which works out to be cheaper over a 3-5 year period. The demand for rental accommodation is also resulting in the property prices spiking higher and higher, making many of the properties in Bangalore too expensive to consider for a short term investment.

Jobs can be unstable, requiring constant movement
Another major reason linked to preference for rental accommodation rather than buying it is due to the instability of job postings. Many companies will want to rotate their employees and keep moving them from city to city and this eliminates the possibility of purchasing a property or even considering buying one on installments. This constant movement makes most working class people return investments back home where they could build or purchase a home in a stable location rather than attempt to purchase homes while at a new city job posting.

Furnished properties considered more convenient for temporary accommodation
It’s also common to find a lot of the house for rent in Whitefield, Bangalore offering furnished properties since many moving professionals would rather rent a furnished property rather than transport furniture and other items. This is also common on most of the flats for rent in Marathahalli since many of the IT professionals have come on short courses lasting a few months before leaving once again thus tenants don’t need to transport furniture.

In addition to this, it’s cheaper to rent a house or flat of your required social status rather than buy one thus allowing people to live comfortably and at a higher social standing than what they may be able to live at if they attempt to purchase a house of their own. These and many other factors contribute towards the increasing demand for rental accommodation in Bangalore and most other major cities in India.

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