An individual who is in the initial stages of his/her career, is likely to have very limited financial spending capacity. Therefore, when it comes to finding a place to stay, a rental home may better suit their needs. Normally, the income of a career starter is low and they may not be able to afford to buy a home. On the other hand, while getting the rental home, they can choose a unit, as per their affordability.
“Rental homes are a good alternative, for people who need flexibility and cannot afford to pay the EMIs for purchasing a home. Typically, India has low rents as a percentage of capital value, ranging from 2% to 3%. This is low, as compared to mortgage rates which are around 8%,” points out Rohit Gera, managing director, Gera Developments and VP Credai – Pune Metro.
Experts add that in addition to the limited cash availability, career starters may also have an education loan to repay. Consequently, renting an apartment is a better option, as it does not require high capital investment.
They can also rent an apartment close to their work location, which helps them to save on time and money spent on commuting. A rental house is also ideal, when a person is unsure about how long and in which he would like to settle.
Benefits of a rental home at the beginning of one’s career
“While opting to rent an apartment, one can choose a location that offers good lifestyle and amenities. It is easier to rent an apartment in a good location than to buy one in the same location. Renting an apartment gives one the flexibility to move to a different location, as and when required. Moreover, buying and selling a property can be a tedious task,” explains Vidip Jatia, director of Belmac.
Career starters should also be careful about where they invest and what will be the returns on the same. “For example, a nature photographer or wildlife photographer, would rather invest the same amount in travelling and equipment instead of buying a property at one place,” he elaborates.
Things a career starter should keep in mind
Following are the things that a career starter should keep in mind, while exploring a rented home option:
- Look for a home that requires a lower deposit amount and fits in to your budget.
- Avoid homes that entail high monthly maintenance charges, especially if it is for things that you do not need.
- Try to find a home close to your workplace or at a location that has good connectivity and transport.
- The monthly rent for a furnished home may be more, but it can relieve you from carrying furniture and other belongings, every time you shift to a new home.
- If you are unable to find a rental home within your budget, then, opt for sharing or a paying guest option.
- Avoid homes in secluded places, especially if your work involves late hours.
- Always check the locality for basic facilities like water and electricity supply and security.