Since time immemorial, there have been some constants that are considered important for a human being’s life. Education, work, and then eventually building a home are some of those. However, considering the young Indians of today, owning a home, often considered the greatest achievement in a person’s life, may not be as viable as renting appears to be.
Yes, it seems many young Indians are choosing to rent a house over buying it, and their reasons are not entirely unjustified.
What Are Young Indians Giving Preference To?
According to experts and industry insiders, a phenomenon is emerging among the 20s and 30s age demographic, where individuals are questioning whether to rent or buy a house, depending on what suits their needs better.
C Prabhakar, Director of Gopalan Enterprises, speaking on this said, “Yes, we are definitely seeing younger Indians defer homeownership,” adding, “Sky-high property prices, economic ups and downs, and the wish to move jobs easily are key drivers. Add student loans and higher interest rates to the mix, and buying simply feels out of reach for now. Yet, the dream of a home hasn’t vanished; it’s just on hold.”
Prabhakar explained that one reason renting is seeing a rise in popularity is due to the flexibility and comfort it offers to people. He said, “Renting often offers better immediate financial flexibility due to lower upfront costs, no maintenance burdens, and ease of relocation, especially for those with fluid career paths. This allows for diversified investments and greater liquidity in the short term.”
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At the same time, experts are not denying that there are benefits to owning a house as well. C Prabhakar stated, “It is crucial to remember that homeownership provides long-term wealth creation and stability that renting cannot.”
Jhobalia also echoed this thought, saying, “While renting offers undeniable short-term financial flexibility, particularly for young tenants trying to navigate their evolving careers, homeownership can prove vital for long-term wealth creation. Real estate has proven to be one of the few assets consistently appreciated while offering significant emotional security, advantageous tax benefits, and fostering long-term savings.”
A global survey conducted by Ipsos India also seems to suggest that many Indians do not really feel they will own a house. The survey found that around “59 per cent of Indians feel they may never manage to own a house.” Some of the challenges mentioned by Indians regarding house ownership include high tax rates, interest rates, and property prices.
As per the survey, “less than 35 years of age feel it is harder for people of their generation to buy or rent a home to settle down, unlike those confronting this choice during their parents’ times.”
Image Credits: Google Images
Sources: India Today, The Indian Express, News18
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This post is tagged under: Young Indians, economy, real estate, real estate india, young indians home ownership
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