Estimate future cost - is renting a viable option?
But I believe that even you have money in your pocket the most important thing to consider when contemplating the purchase of a home is not its cost now, but its cost in the future. Exactly.... I'm talking about the resale value.
In other words, how will your monthly installments or EMI for you home compare with monthly rent payments ten years down the line? As a lessee, you are not protected from increases in the cost of living, also known as inflation, so your landlord can increase the price of your monthly rent at his or her discretion.
In metros like Delhi, the forecast for annual increases in your monthly rent payments is 10% per year. Although that increase in rent might not sound like a whole lot, if you continue to rent year after year, it certainly adds up.
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