To rent or not to rent? Rashmi argues in favour of buying one.
It’s vacay time and you want to hit your favourite destination—Goa. You don’t want to stay at a five star hotel, and even if you did, any longer than a week means a black hole where a wallet should be. You’re not the compromising type either—quality matters. So you’re thinking of a nice little villa in a scenic spot. Next hurdle: own it or rent it? How about owning a holiday home which you can rent out when you aren’t around? Why would I want to do that, you ask. Probably because…
#1: It means a great return on investment
You’re wondering if it’s worth the investment. Yeah, I’m chilling on Goa’s beaches often, but not every other week or month. If I’m not really there to look after it, or check if tenants aren’t breaking rules, what’s the point? But here’s the thing—you don’t have to be there. There are many trustworthy organisations that would do this for you for a small fee. And in the long run, it’s a great return on investment. Goa’s popularity as a holiday destination is indisputable. It’s easy to plan a trip on a small budget, which means loads of people will be planning a trip. Trip Advisor lets you put up ads for renting out your property. Goa Rooms, Goa Holiday Homes, Travel Mob and Roomorama are other great websites worth checking out.
#2: Appreciating Value
Values appreciating definitely add returns to investment. Land values appreciating would also leave their impact on buying v/s renting decisions. Values appreciating means homes are expensive to buy. Renting would seem a much better option in this situation. Now here’s your leverage: own a home while prices are down. In addition to its value appreciating over time, there would be a line of potential tenants wanting to rent your home while you’re away.
The most obvious, yet the least easily considered factor. Having property as an asset is a wonderful thing to add to your will. There are the obvious reasons mentioned above, and you’ll never have to spend your post-retirement time worrying about what to entrust to your family that would be of great value to them.
#4: You’d Want to Plan the Ultimate Get-together
Now here’s one purely fun situation where buying a home clearly trumps renting one. Think nights of shenanigans with friends—pool parties, booze, loud music, dancing into the wee hours of the morning. Face it, that’s why you’re looking for a home in the first place. Hosting parties at leisure, going by your rules is mainly possible when you buy a home. Sure, so does renting, but don’t forget it comes with its own shackles. You don’t want to be evicted by a grumpy landlord, ever. Then there’s the more sober among you looking for some family time. Bring the whole jing-bang lot to a beautiful villa tucked in a quiet spot. It’s perfect for unwinding with your close ones. And there’s no limit on how long you’d want to stay.
Half-convinced? That’s good, ‘cos we’ve only won half the battle. Goa’s property laws are a tad bit unique—they differ from the property laws of other Indian states. The old Portuguese laws they were based on were never changed, and title clearance requires contacting and approaching the right people who’d take you through all the legalities and paperwork. Don’t fret though—we’ve got a neat compilation of Q&As on our site on what you should know before taking the plunge.
What? Goa’s not your favourite destination? Better look elsewhere then.