In order to create an objective measurement metric, ArthaYantra developed a proprietary composite score “ArthaYantra Buy vs. Rent Score” (ABRS)TM to address the buy vs. rent discourse. ABRSTM not only aids in making the Rent vs Buy decision but also explains the affordability and need to buy or rent in a given city.
Hence, the ABRS report concludes:
· Hyderabad and Pune are the best places to own a house. The property prices and rental values in these two cities are low, thus making them the most affordable places for a professional to rent or own a house.
· The real estate market of Kolkata favors the home owners because of its moderate property prices and high rental value.
· Though the moderate property prices of Chennai and Bengaluru make a strong case of ownership for professionals with higher salaries, the low rental values make renting a better option.
· The high property prices and low rental values of Delhi NCR make the decision to rent easier.
· Mumbai is the least affordable city for a professional because of its high property prices
and rental values.
· First time home buyers should consider the potential time of stay as an important factor.
ArthaYantra is a young and innovative company started by a group of alumni of the Indian School of Business (ISB) Hyderabad. It provides integrated personal finance services using its unique proprietary framework, Personal Financial Lifecycle Management (PFLM)TM, which helps clients achieve their financial goals. ArthaYantra’