Rent or EMIs: The Confusion in Every Millennial Mind

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by  Mr Lalit Makhijani, Chief Marketing Officer at Godrej Properties Limited.

As of the year 2019, children born at the turn of the century are now legal adults with the rights to get married, take up a job and choose their preferred government. What’s interesting about this entire demographic is the fact that certain aspects of life have maintained their vice grip on society, shaping and determining adulthood. One example of this is the idea of home ownership.

Picture this:You’re in your 20s, working the 9-5, new to the city, and have the opportunity to live in a luxurious house filled with all the comfort you desire, and you need to only pay a monthly rent. If you have decided to settle down in the city, would you take this up or would you rather put your money into owning a house;easy beginnings to a stable life?

Everyone today, has witnessed at least one instance of an elder speaking highly of individuals who own the house that they live in, having made “a wise financial decision” at the right time – and it’s not wrong to admire these people who seem to have got it all figured out. But the question still lies, is this what most millennials want today?

Home ownership in most social settings across the world (and very much so in India) is seen as sign of immense financial stability and by extension, a sign of being able to provide for our loved ones. Living in a house that you have bought with your hard-earned money is a matter of immense pride and can yield many unforeseen benefits like becoming a source of passive income as well as providing immense security in times of need. Needless to say, these are all results of an emotional bias and very few get to realize the economical logic behind it. Being passion driven and overachievers, millennials are focused on getting the most out of their younger days, socially and professionally. They want to make the big buck, live the grand life and still create security for their older days. And if this is the case, aren’t EMIs the best option?

Holding a preference for easy beginnings, millennials are moving out of their homes in their early 20s, prioritizing their finances and time according to what they value the most. Which is why the statement, “you should invest in a house” is usually met with disdain, disinterest or both. Buying a house is perceived as a factor that ties down a person who isn’t set on laying down roots at that particular juncture in his/her life. The person would rather pay a minimal rent and spend the rest of the amount on traveling, studying, experiences, etc., anything that would make them happier. And this sentiment is completely valid.I’m sure even you have felt this way at some point in your life, which further implies that the millennials can’t be faulted for abiding by it.

Renting is a fantastic option (whether in the short term or long term is up for debate) because it frees you from the trappings of the mundane auxiliary responsibilities like maintenance and upkeep, as well as allows you to take life and opportunities as they come. Some may even rationalize by saying, “a house can be bought at any point in life, right now I wish to live in the moment and enjoy myself.” But if you are focused on having stability from the start, investing in buying a house in the metropolis guarantees you this. If you are sure about your decision, work on it immediately. There are several bank schemes that permit you to pay an EMI which is equivalent to month’s rent. Furthermore, certain realty projects give you possession of the house soon after you’ve made a down payment. This relives of the burden of paying EMIs and rent.

In a volatile market where the price of realty keeps fluctuating, it is indeed a wise decision to invest in this sector, laying down roots and securing your future. Thus, if your current active income allows, sound financial planning can accommodate the purchase of a house and give you the lifestyle you dream of.

Corporate Comm India(CCI Newswire)