Real Estate Industry Residential


Ratul Properties Ltd.

At Ratul Properties Ltd. out of many of our property solution services, two are prominent,

  • Help you buy a suitable apartment or house, and
  • Help you rent a reliable apartment or house.

But among these two options, which one is preferable? Is it more profitable to rent a house? Or is it better to buy your house or apartment?

According to the Data from “World Population Review,” the population of Dhaka City is approximately 21,741,090, with a population growth rate of around 3.56%. On the other hand, research done by the Consumers Association of Bangladesh (CAB) shows that around 80% of the population in Dhaka City lives in rented houses.

With the increase in house rent in Dhaka, now many people are considering investing in buying a house rather than worrying about house rent every month. On the other hand, soaring property prices have deemed buying a house to be rather farfetched for many. In this article, we are going to discusssome of the pros and cons of each option.

Advantages of Owning ahouse.

  1. Stability and Freedom: One of the greatest benefits of becoming a homeowner is always being assured that you have an address, a place to call home. You will never fear any adverse situation where you might be asked to move out of your residence. This form of assurance or stability leads to a peaceful work and social life.


Having your very own apartment or home also gives you a sense of freedom. You can redesign, remodel, and even restructure your home any way you like. You can decorate and use it according to your preferences. Every corner or every wall of your home reflects your likings and your tastes. This freedom manifests joy, fulfillment, and satisfaction in your daily life.


Not only the Freedom of creativity and choice of arranging your home according to your wish but owning a house also gives you financial freedoms. We shall follow upon this in the next point.


  1. Recurring Costs:This might be one of the major points that attract people to buy an apartment or a house. Once the monthly installments or any mortgage payments are settled, Homeowners enjoy a minimum monthly expenditure on their homes. There might be some recurring costs like cooperative charges or maintenance costs, but that too is quite less compared to the growing monthly rents.


  1. Real Estate Investment: Investing in Real Estate is one of the smartest decisions one can take. Any form of investment can generate some sort of returns or benefits in the future but investing in real assets like real estate has a much higher profit than other investment examples. One of the main reasons for that is the Capital Appreciation of Real Estate. Data from REHAB shows that the per square feet price of apartments in Gulshan, Banani, Baridhara, and Dhanmondi have all increased at a colossal rate in the past decades.


Moreover, if one does not choose to live in their house, they can rent it out as well. As house rent increases almost every year, this promises a steady income source.


  1. Security and Self Respect: Apart from the points discussed above, buying a residential property fulfills our basic need for accommodation. It also secures a future for us after retirement and for our next generation. And lastly, of course,buying a house or an apartment is a matter of social stature. In today’s rapidly changing environment, companies are competing to provide their clients to provide with the best designs, the best locations, most luxurious features, and amenities, and so on. Why not take this opportunity and own an asset which will give you a sense of security and self-respect?

Disadvantages of Owning an apartment or house.

  1. Maintenance Cost and other Responsibilities: Although buying your resident gives you full ownership, it also comes with many responsibilities. Among them, maintenance cost is a major concern for many homeowners. Other expenditures include paying property taxes, maintaining legal matters, paying bills to the utility offices, ensuring cleanliness and security, and of course carrying out preventive and corrective maintenance works.


  1. High Purchase Cost and EMIs: The single most troubling matter when buying a property is the massive cost that many cannot afford. Even if someone wants to buy an apartment or house on EMI, still the monthly installment rate might be higher than that of house rent. In some cases, due to market instability, the seller might increase the EMI rate. These factors discourage a lot of first-time buyers to take the final decision of buying a house.


  1. Relocating: Our lives change constantly. Our professional address changes, our children change schools or go to college and universities in a new area, better opportunities arise at a newer location, and so on. Because of these reasons we often might need to consider relocating our home address. We might need to stay near our office or might even need to move to a new location to improve our standard of living. In such cases, it is quite tough for a homeowner to leave or sell his or her current house and buy a new one at a more suitable place.

Advantages of Renting a house or apartment.

  1. No Initial Investment Needed: Unlike buying a house or apartment, renting an apartment needs no significant financial investments. On the other hand, a considerable amount is required in the form of a down payment when buying a house.


  1. Less Liability: A definite advantage of staying in a rental apartment is being free of most of the responsibilities of a homeowner. You do not need to worry about the water supply or the performance of the generator. You do not need to worry about anyone misusing any common facilities like the Elevators, Rooftops, etc. Carrying out such maintenance works also requires a lot of money. Staying in a rental apartment frees you from maintenance costs, property ownership taxes, and renovation costs.


  1. Can Easily Relocate: A definite advantage that renters or tenants enjoy over home buyers is the freedom to end the tenancy contract and move to a newer location. It is always convenient to move out of a rented house by giving three months prior notice rather than selling your house and buying a new one at a new place.

Disadvantages of Renting a house or apartment.

  1. Investing in Other’s Property: Probably the biggest disadvantage of paying house rents year after year is that you are investing in someone else’s property. You could have used that money to invest in your asset or even saved up for it during your retirement. Any renovations or improvements that you make in your rental apartment will increase the value of the homeowner’s house, not yours. If the value of the location escalates due to urbanization, the property value rises as well, and this, in turn, increases the rent price.


  1. Endless Recurring Cost:Flat rent in Dhaka is an ever-increasing burden. Research carried out by CAB shows that the rate of house rent has increased by around 388 percent over the past 25 years! Not only that, no matter for how long one pays the house rent, they can never own the asset. Every month there is the anxiety of ensuring and paying the rent from which, one can never be free! On the other hand, paying EMI establishes the security of owning the property when it has been settled. In the long run, say 20 to 25 years, the amount spent for house rents could accumulate to the price of buying a house.


  1. Choosing the Owner: Choosing a suitable landlord or a homeowner can be hectic and time-consuming. In Dhaka City, finding an amiable homeowner might be difficult. From the homeowner’s point of view, it is not that all homeowners are strict but some uncertainties arise as both the parties do not know each other. In this scenario,Ratul Properties Ltd. offers a reliable solution to both homeowners and tenants with our authentic and active listing of properties.


  1. Lack of Freedom and Instability:Renting a house or apartment restricts you from a lot of activities that you could have done if you were the owner of the house. You might not be allowed to remodel or redecorate your space. Often you might not even get the drive or interest to personalize your residence. There might be other restrictions as well, like permission to have pets or allow guests after a certain time of the day.


In extreme cases, the homeowner can ask you to vacate the house within a short period. It can even be a sudden announcement that is as short as a 30-day notice! During inflation, the house rent will increase along with your other cost of livings. And in the direst situations, during an economic crisis, one might even have to move out for not being able to pay the rent.


Renting a House or Buying it – Which is Better?

Of course, the advantages of owning your home or apartment outweigh the benefits of renting a house. You do not need to worry about paying house rent every month, you get more freedom, a sense of stability, security, and self-respect. But at the same time, the initial cost of buying an apartment or house is substantial, and thus, unaffordable for many, while the EMIs can be much higher than that of flat rents. Furthermore, there are some risks associated with investing in Real Estate.

Therefore, it can be concluded that those who can afford and take the risk of buying a house must go for it. And those, who cannot, might still look for options like seeking support from financial institutions. In a rapidly booming real estate market, owning a house is more profitable.Whereas, if there is no room for property value appreciation, or for those who are shifting jobs frequently, renting might be the better option. It also depends on everyone’s personal preferences, but still, what else can be better than freedom and stability in your accommodation?

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