Instead of buying a house, a large number people in some countries go for renting a house. There are many pros and cons when it comes to renting a home. An Oxford University study on people's interest in buying a home says that, around 60% of the floating population in a metropolitan city are living in rented homes. There can be multiple reasons when they decide to pay rent, rather than paying the EMI for a house loan.
Firstly, the people who work in multinational companies are coming to a city that has more job opportunities. Likewise, there will be a large population that has moved to such cities only for work. These people have their parents and relatives in a different city and having the hope to move to a better city or country when they find better job vacancies. So, this part of the population has no interest in buying a home in the current city, taking the house loan which takes another 15 years to pay back. Secondly, the homes near anyone's workplace is obviously expensive and only a few can afford them, as most of the offices are located in the core of the city. For this reason, the middle class people have to find a home in a remote area, that is located more than 25 to 30 kilometres from the workplace, just because it is affordable. They have to bear the loan as well as the time invested in commuting to office, which will have an effect on peaceful life, especially, for the new generation Corporate professionals with no job guarantee.
However, the rented home has its own disadvantages, like, we have to pay the rent every month which is almost equal to a home loan EMI, where EMI will lead to possess a property in the long term, but rent will not, we cannot make alterations to the rented home, there is no guarantee when the rent will be increased or when the landlord will ask the tenant to vacate etc.
Instead
of buying a
house
, a large number
people
in
some
countries go for renting a
house
. There are
many
pros and cons when it
comes
to renting a home. An Oxford University study on
people
's interest in buying a home says that, around 60% of the floating population in a metropolitan city are living in rented
homes
. There can be multiple reasons when they decide to pay
rent
,
rather
than paying the EMI for a
house
loan.
Firstly
, the
people
who work in multinational
companies
are coming to a city that has more job opportunities.
Likewise
, there will be a large population that has
moved
to such
cities
only
for work. These
people
have their parents and relatives in a
different
city and having the hope to
move
to a better city or country when they find better job vacancies.
So
, this part of the population has no interest in buying a home in the
current
city, taking the
house
loan which takes another 15 years to pay back.
Secondly
, the
homes
near anyone's workplace is
obviously
expensive and
only
a few can afford them, as most of the offices
are located
in the core of the city.
For this reason
, the middle
class
people
have to
find a home in a remote area, that
is located
more than 25 to 30
kilometres
from the workplace,
just
because
it is affordable. They
have to
bear the loan
as well
as the time invested in commuting to office, which will have an effect on peaceful life,
especially
, for the new generation Corporate professionals with no job guarantee.
However
, the rented home has its
own
disadvantages, like, we
have to
pay the
rent
every month which is almost equal to a home loan EMI, where EMI will lead to possess a property in the long term,
but
rent
will not, we cannot
make
alterations to the rented home, there is no guarantee when the
rent
will
be increased
or when the landlord will ask the tenant to vacate etc.