who migrate from their native city to other places in search of work – Whether to buy or to rent an apartment. Here is a small example that can help in making a decision about buying a house or renting it. Best is to observe it in terms of the market rates, so let’s consider a practical example with the real estate markets rates of buying a flat and renting it.
Here’s an example:
A 3 BHK apartment of around 2000 sq. feet is being priced at 4200 Rs. per square feet in prime locations like Pune, Hyderabad or Bangalore. All these cities are IT destinations of India. So the basic price of the flat comes out to be around 84 lakh Rs. flat!
Then, add to it the stamp duty, registration charges, etc. and the price will shoot up to around 90 lakhs. Interestingly, these apartments are new constructions and are far off from the main city. Builders claim that it is the upcoming area and will be populated soon.
See another alternative – to rent.
A 3 BHK apartment in the same locality with same amenities and facilities are being offered for rent at the rate of 15,000 – 20,000 Rs. per month. However, the size of these apartments are a bit small, around 1500 sq. feet, as compared to 2000 sq. feet for the flat for sale. So if you do some kind of “scaling” for size, the rented apartment for 2000 sq. feet area would come for a monthly rent of 25,000 Rs.
Proceed to the calculations for the 2 alternatives
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