The real estate market in Pune continues to flourish every year as more and more people travel to the city for its wealth of opportunities. Property prices have consistently gone up over the past few years, and the situation in Pune is no different.
But Pune is still one of the more affordable places to invest in real estate in India. Despite that, it is still a long way to real estate investment when it comes to the workforce that it primarily being drawn towards the city.
If you are a student, an IT professional or a recent graduate trying to establish yourself in Pune, where do you live? Investing in buying a home needs proper planning otherwise you could be stuck with no money in your bank account and a property you cannot afford.
What Are the Best Alternatives to Buying a Home in Pune?
If it's too early for you to think about buying a home, or if you would just rather not get into the world of property investment, Pune still has a plethora of options for you.
The most common alternatives to buying a home are either renting, living in hostels or opting to live in PGs in Pune. The first thing you need to consider before selecting what kind of property you want to live in, is where you want to live.
Living in a place that is close to emergency services, has access to public transportation and basic amenities, as well being near areas where you are likely to spend time regularly – the commercial and IT hubs, can be more expensive than suburban areas.
Their accessibility to various amenities makes them more sought after and the prices soar with the demand. However, they also make life easier and your overall transportation cost is likely to go down. Pune is a big city and transportation costs can run high if you don't manage your budget.
Once you have settled on how much you are willing to spend on living space, and decided upon a location, the next step is to find an alternative to buying a home.
Renting, PGs and Letting Out Homes in Pune
Since buying property is becoming more and more difficult, people have turned to other options such as renting an apartment sharing. Here are some alternatives you can consider to buying a home in Pune:
Become a Property Sitter
Not everyone is coming into Pune, many people regularly leave as well. They may have to move to another city for work, or for other reasons, but they sometimes they choose not to sell the property they have in their hometown.
This property then becomes a very good option to rent, especially if you are looking to stay somewhere cheaply. It's even cheaper if the owner has a pet you agree to take care of.
You are expected to live in and take care of the house for a nominal rent, utilities and water are typically paid for by the renter. Commercial properties that are not in use also sometimes look for people to inhabit the building and keep it usable.
Find a PG Building in Pune
Living as a Paying Guest in Pune can be a lot of fun. Most of these are segregated by gender, and they are a popular choice for working professionals who have just moved to Pune. PGs in Pune allow you to live within a routine and not have to worry about things like food and utilities. You could opt for a single room or live with roommates depending on your budget.
Stay as a PG at a Home
More homes today are comfortable with renting out extra rooms on the property to working professionals and students. You can expect home cooked meals and a warm family environment, but you would also have to be comfortable with following the rules of the family you choose to live with. This option is basically like an extended home stay in Pune.
Hostel and/or Dorm Living
These are a little different from living in PGs. While PGs offer more privacy and are a little costlier, hostel living will have your room up with multiple other people. They usually have a Mess Hall where they serve basic food as well. This is a cheaper option for anyone looking for a place on a budget.
Rent With Friends
If you are moving to Pune with friends, or have friends there ready to move in with you, then there is some good news for you. Renting a property may be expensive individually, but if you pool your resources, then you can find that renting an amazing apartment is not impossible.
The only downside to this option is that you will need to regulate and plan your lifestyle with your friends so that your utility expenses don't overshoot and you don't cross your budget. Unlike the other options, you will also have to maintain the rented property yourself.
Becoming a Landlord
If you want to invest in a property despite the property rises, there is an alternative option for you. You could consider taking out a real estate loan, purchasing a property and paying back that loan through the money you make by renting out the property you bought. This is a kind of real estate investment that has been in use across the world for a while.
Not only do you not have to worry about paying back your EMI, as the rent you charge will cover it, but you also get to make a property from any surplus rent amount left over. But to make this option work, you must first have the initial downpayment amount, credit score and necessary documentation as well to get the loan.
Pros of Alternative Housing in Pune
- Most of the property you come across in this sector are taken care of by the property owners and have access to both amenities as well as transportation. Depending on where choose to rent or stay as a paying guest in Pune, you can expect your rent to be anywhere between Rs.4000-15,000 without utilities.
- There are more expensive renting options as well. PGs in Pune also come catered to specific groups. There are ladies paying guest accommodations in Pune, PGs for couples, PGs for students and much more.
Cons of Alternative Housing in Pune
- You will have to ensure that you regularly renew your rent contract should you opt to stay in the same property for a longer period of time. If you are paying extra for utilities, you need to be aware of the general bill expectancy in your area and budget your electricity and water use accordingly.
- The main disadvantage comes at the cost of a slight loss of flexibility. Many of these accommodations in Pune have times by which you need to come back, food that may not be your favorite and other people you have to live with who you may not like.
- Residential properties may become more expensive as time goes on, leaving alternatives options as something with looking into. As long as you can be flexible with accommodation, you can save a lot of money by considering alternatives to buying a house in Pune.
