Just like buying a property has its own pros and cons, renting a property also have pros and cons too. Renting a property allows you to earn an additional amount of money on a monthly basis and on the other hand, buying a property gives you security as it is a long term investment.
Whether you are planning to take a small warehouse for rent in Bangalore or thinking of buying it, then these pros and cons will definitely help you make a better decision:
Advantages of Renting a Property
If you rent a property it will allow you more flexibility than owning a property. Renting is ideal for those who face frequent location due to transfer in job. Renting will not require any long term commitment. Being a tenant, you can get to live in a location which you may not afford to buy. You can move out easily, unlike an owner who will have the continuous stress of finding someone to take over the lease or finding a buyer to purchase the property. The only insurance that a tenant requires is that of covering all the contents of the property since the maintenance cost is the sole responsibility of the property owner. A tenant can always save a good amount of money after paying rent, which they can use to invest somewhere else.
Disadvantages of Renting a Home
A tenant has to get involved in a lot of rules and regulation of the lease agreement. This can have an impact on the freedom to renovate or use the property according to their choice. Without the consent of the landlord, you will not be able make any changes to the property. Sometimes, while renting you might have to involve a broker and you may incur the extra expense of paying him. There will be no guarantee of renewing the lease when it expires. Also renting a property, you will have no control over the annual price inflation involved.
Advantages of Buying a Property
Buying a property definitely provides you with the long term benefits of security, equity and also the potential growth in your wealth. The value of the property increases over time and deciding to sell it later can earn you a good amount of profit. Owning your own property gives you total control over it since you are the landlord. You can decorate it in your own way. You can rent it out any time you want to generate extra source of money.
Disadvantages of Buying a Property
Being the owner of a property gives you a big financial responsibility like house maintenance and also bond repayments. You have to bear additional costs like taxes, rates, insurance and maintenance. A landlord will always run the risk of not making a profit through resale. Mainly economic factors are responsible for this like location, rate of interest etc. Be it commercial warehouse for rent in Bangalore or any other property, a tenant can leave the property after completing the notice period. But being the owner you have to mostly depend on selling the property before deciding to buy again.