Pros and Cons of Renting a Residential Property in Pune

Whether to buy or rent is a million-dollar question that arises in the mind of every individual at some point. With the number of residential projects in Pune constantly on the rise, customers are always thinking whether they should take the leap and buy a property or just rent at the moment and buy in the future. Both options have their advantages and disadvantages, like buying a home comes with a sense of security while renting spares more expendable money for short time.

We bring you some of the main pros and cons of renting a residential property in Pune so that you can make an informed decision as per your requirement.

 Pros

1. Flexibility – Renting a property allows more flexibility as there is no long-term commitment. This is a great option for those who are in a particular city just for a job and aren’t sure if they want to continue living in the same city for an extended period of time.
2. Convenience – If you don’t have the funds to live in a desired residential area at the moment, renting is a great way to stay in a locality where you cannot afford to buy.
3. Zero Stress – As a tenant, you don’t have to worry when you have to vacate the home. You don’t need to find another tenant or find a buyer for the property, which might get stressful for home owners.
4. Insurance – As a tenant, you have to pay less insurance or property tax as these are handled by home owners. You just need to get insurance for the items inside the home.
5. Disposable Money – As renting is cheaper than a home loan EMI in most cases, you will have some additional money left that you can invest elsewhere.

Cons

1. No Security & Stability – One of the biggest drawback of renting a residential property in Pune is missing the sense of security that you can gain with your own home. You don’t have the stability of staying in the place for long-term as once the lease is over, you might have to vacate and finding another home can be a headache.
2. No Investment or Equity –Over the course of time, residential properties in Pune appreciate in value and create wealth for their owners. But for tenants, renting creates absolutely no long term value or wealth.
3. No Freedom – Renters are bound by the lease agreement and in most cases, they cannot make any changes or renovations to the residential properties in Pune. This limits the freedom to live as per your choice and needs.
4. Rental Fluctuations – You don’t have control over the annual rental fluctuations caused by inflation and this may cause you to pay excessive rent many times when renting at residential projects in Pune.
5. No Major Tax Advantages – Tenants miss out on valuable tax exemptions that owners can claim. This can be a monetary loss in the long term for renters.

While the decision of renting or buying is truly dependent on your financial health and your requirements, understanding the pros and cons of both will help you make a profitable decision for long-term benefits.

Expected Real Estate Trends for Pune in 2016

Pune has seen an incredible rise in property prices since 2011. The rates have risen more than 35% in this eighth largest city in our country. Residential properties in Pune have been performing better than Mumbai and the National Capital Region. However, with the recent slowdown and sluggish markets in the country, there are high expectations for a positive change in 2016.

As per a recent report by Fitch, a global rating agency, the Indian property market is expected to see a lot of positive benefits by the end of arch 2016. As we near the end of 2015, we bring you a glimpse of what’s in store for Pune’s real estate market in 2016 :

Low Interest Rates – RBI has cut interest rates in 50 basis points during two rounds this year. As the interest rates are getting lower, home loan seekers are finding a much-needed relief in the sector. These cuts will become more prominent in the next year and those who are looking for residential flats in Pune will get the chance to seal the deal.

The Rise of Luxury in Tier II Cities – Pune has been an attractive destination for luxury and semi-luxury apartments in the recent years. This has prompted both, big and small developers to enter Pune markets. Features like home automation, modular itchens, Italian marble and wooden flooring, clubhouses, swimming pools, Jacuzzi and a host of recreational amenities are now making their way in premium residential properties in Pune. The capital appreciation and rise of luxury also attracts a number of investors to the city.

Residential Plots Gain Prominence – With the rising number of residential plots for sale in Pune, it is no surprise that buyers prefer buying plots for their attractive returns in mid to long-term horizons. The upcoming smart cities around Pune where the apartment culture is still not well-developed are identified as ideal plot destinations. Residential plots in Pune are a great investment opportunity and they will continue to rule the property markets in the next year as well.

Increased Foreign Direct Investments – With the government’s plan of making 100 smart cities in India, the real estate sector has seen a lot of positive foreign investments from NRIs and other communities. The flow of seed funding will boost investment in the sector and lead to tremendous growth in the years to come.

Affordability Becoming Priority – Since the BJP promised ‘housing for all’ by 2022 in their manifesto, affordable housing has become a priority. Many developers are also considering the need for affordable housing and developing projects that match the exact requirements of their customers. As per a recent survey by Common Floor, 50% of home buyers prefer regular amenities over the ultra-luxurious ones. With fewer and simpler amenities in certain projects, buying a home is now becoming affordable and possible for most families.

Easy Payment Plans – Builders are now offering easy payment plans to customers, making it even easier for middle-class families to buy a home. Booking amounts in many projects has come down to just Rs. 50,000/-, which will motivate buyers to finally book their dream home.

Residential properties in Pune have been in the spotlight since the last few years. Though 2014 and 2015 seemed like a slowdown for other parts of the country, properties in and around Pune has seen a steady growth and the coming years also promise a similar growth in this sector.

Plot Gyaan – My Plot, My Space, My Enjoyment!

Land is a tangible asset unlike stocks, shares or fixed deposits. Your
investment in gold too stays in the locker but it cannot give you the pleasure of
companionship like your plot. At Shubhyog , you can enjoy your investment in various ways, till you decide to construct.

Check out how!

• Plant fruit trees in the side margins
• Create a small kitchen garden on your plot and enjoy the seasonal vegetables
• Have your own lawn area surrounded by flower garden
• You can even build your own small shelter at reasonable cost

We have a full time horticulturist to guide and assist you in selection and

plantation of suitable plants. We have also developed a sample kitchen

garden and nursery with variety of fruit and flower plants to select from. With

our assistance and your enthusiasm, you can convert your plot into a weekend

destination and enjoy what you have invested in!

While you continue enjoying your investment, the transformation of your plot
will also increase its value giving you one more reason to smile. More the
enjoyment, more the appreciation. Possible only at Shubhyog!

Helpdesk @ Shubhyog –

• 24 hours maintenance team
• Nursery
• Sample kitchen garden
• Legal assistance
• Loan assistance
• Plot development assistance
• Resale assistance

Shubhyog : The land of opportunity

'Shubhyog' by Remonesa is a plotting scheme that spans over 40 acres located at Asawali, Shirwal. The project is flanked by 961 acres of Kesurdi-Khandala MIDC and 280 acres of SEZ. Located at just 4 kms. from the Pune-Bangalore highway, Shubhyog enjoys an excellent ticket size in and around Shirwal. The project has already experienced more than 66% returns in just two years!

Surrounded by serene hills on three sides, every plot at Shubhyog enjoys a stunning view. All the plots enjoy 1 FSI and are equipped with all the primary amenities. Fencing for each plot ensures its security and MSEDC connection for each plot is in place. Name and number plate are provided for each plot. Club house, gymnasium, sports zone and sit out area make for your relaxation and enjoyment.   

The plot sizes starts from 2000 sq. ft. and with the help from Remonesa, you can also build a small cottage on your plot converting your very own plot into a weekend picnic spot!   

Shubhyog is a well thought out and well planned scheme and its grandeur will catch your eye right from grand entrance gate which stands tall as an assurance of utmost security. Internal roads are wide with street lights and the entire layout speaks of designing perfection.

Company of distant beautiful hills, refreshing breeze throughout the day and serene surrounding are some captivating features of Shubhyog and they are coupled with the most magnetic of them all - high value returns! Shubhyog is a land of opportunity and your early decision will help you reap the best benefits! 

Shirwal: The expanding horizon

Pune has grown multifold in last few years. Especially with the growth in IT, banking, hospitality and retail sector, the city has witnessed a sea change in its entire personality. The pensioners' paradise of yesteryears is today's hot spot for education, business, entertainment and most importantly – property investment. Pune today is on the verge of being a metro city and like the other blooming sectors, real estate market in Pune has been recording a consistent growth over the years.

With the increase in the population, there has been an increased sense of urgency in the infrastructural development also. With the multi directional growth of the city, there have been unprecedented investment opportunities spread all over the city and the neighboring areas. Availability of land for development results in the expansion and development of peripheral localities. Located at about 65 kms. from Pune, Shirwal is one such location that has experienced fast track growth in recent past and has become a preferred location for property investment. Investment in Shirwal has fetched extremely handsome results in last five years owing to the fact that this region is throbbing with major industrial activity with a turnover of more than 7500 crores. Around 73 top companies have already developed their operations facility at Shirwal. This includes bigwigs like Godrej, Finolex and Asian Paints. Compared to Chakan, Talegaon, Pirangut and Ranjangaon, Shirwal has emerged as much better choice considering the ongoing rates at these places and growth prospects.

Shirwal enjoys superb connectivity to Pune, Mumbai and Bangalore and the industrial growth here has ensured immense job opportunities and further growth. It has resulted in increased demand for plots too. NA Plot at Shirwal has proved to be the most fruitful investment option.

So if investment in plot is on your mind, Shirwal should be your obvious choice!