The Most Important Reasons to Rent House in Chennai
Chennai is a city where people are looking for homes, as real estate prices have skyrocketed in recent years due to a scarcity of plots and restricted available land for building. On the other hand, there is an increasing demand for newly created properties, spurred in part by the country’s tremendous economic expansion.
What are the advantages of a house for rent in Chennai? Let we begin with something straightforward:
Many people have told them that real estate is a very profitable investment, and they are correct. Property prices in Chennai increased by an average of 8-10 percent per year, making it a good prospect for long-term investments for those who can afford it. Additionally, the government promotes many schemes, including interest subsidy programs to assist first-time home purchasers in purchasing a home. This means that property values will continue to appreciate at a faster rate than in other cities, even 5-6 years from now, making this a great investment destination for anyone looking to increase their money faster than in other cities.
Chennai’s real estate prices have increased dramatically over the last year, and they can anticipate considerable annual increases. While it is not as high as 40% each year as in certain Asian countries, a 25%-30% increase is very common, and these rates will only accelerate to 10-15%. Typically, property prices fall during recessions as a result of decreased expenditure, but this has not been the case in India thus far, although it is still too early to forecast such developments.
Everyone is aware of how difficult the real estate market is, and properties typically retain their value over decades, which is one of the primary reasons they are referred to as long-term investments. If they acquire a house on leasehold land, the lease specifies that they have a limited right to use the land for a specified period and then have the option to renew or purchase the lease. The majority of leases are for 10-15 years, and even if they pay to extend their lease, it’s still quite inexpensive in comparison to Singapore, where it’s probably 5-10% of property worth.
Acquiring a Chennai apartment is similar to purchasing an ATM: not only can it appreciate over time, but it can also be swiftly sold (within a few months) without a lot of difficulties, as everyone wants to invest here due to the high profits, which means there is always a buyer available. If they are concerned about failing markets such as Japan, they need not be; it was 20 years ago, and no one lives in terror of crumbling markets now. If they are forced to leave the nation for any reason, selling their home may be problematic; plan appropriately or ensure it is registered under RERA to make the process much smoother.
If they require income from their investment property, Chennai is undoubtedly one of the greatest locations in South India, as flat and flatmates in Chennai are willing to pay above-market rates due to the city’s demand-supply imbalance. If they’re seeking short-term rentals, the yields here are also superior to those in other big areas such as Bangalore and Mumbai (less than 1 year). However, due to the high expenses associated with renting, individuals prefer to purchase properties, which means that there is a continual demand for new homes, resulting in dropping inventory levels.
6. Purchase proclivity
Numerous folks have inquired as to why I desire to purchase a house when they may rent one. They argue that there is no use in purchasing an apartment that would be occupied for less than five to ten years, as gradually increasing rental rates will amortize the cost of their investment, making it more valuable after ten years. This is true, but they must consider the possibility that things will not go as planned and something unexpected happens to their career or business, forcing them to relocate. In such circumstances, it becomes difficult for them to re-enter the real estate market (because everyone is aware of prices), unless they are already financially self-sufficient like I am. Thus, while renting is preferable if all goes well if not, owning their home will be beneficial. While many believe the sole reason I want to own a house is to prevent rental stress and sleep soundly at night, there are numerous additional reasons I believe will benefit my future, and this post attempts to discuss nearly all of them in detail.
7. Incentives offered by the Tamil Nadu government
The state government offers interest subsidy programs to assist first-time home purchasers in purchasing a home. This indicates that property values will continue to appreciate at a faster rate than in other cities even 5-6 years from now, making this a great investment destination for anyone looking to increase their money faster than in other cities.
8. Chennai has seen remarkable growth in recent years.
Chennai’s proliferation of IT companies has resulted in a proliferation of infrastructure and real estate. The metropolis is predicted to double in size over the next 25 years, compared to already-congested places such as Bangalore or Mumbai. All of this suggests that demand for housing will continue to grow not just now, but also in the future, allowing homeowners’ properties to appreciate at significantly higher rates than they paid for them.
In a nutshell, stanzaliving is the finest choice for buying homes in Chennai and renting.