[ecis2016.org] Financial constraints and the flexibility to move from one location to another, make rental accommodation a better option at the beginning of one’s career. We look at the factors that such individuals should consider, while searching for a home
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.
You are reading: Rental home is the best option for the career starters
“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.
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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.
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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
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“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.
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Source: https://ecis2016.org
Category: Lifestyle
