Why People Are Switching from Renting to Owning Assets as an Investment and Lifestyle choice

Industry experts predict a continued uptick in the coming months, easing the long period of pent-up demand across sectors
Why People Are Switching from Renting to Owning Assets as an Investment and Lifestyle choice

Three out of every four Indians now prefer asset owning over renting to secure their future in the post-pandemic world. Also, one in four Indians feels purchasing a home of their own is crucial in securing their future, second to securing a career. 

Moreover, one in two Indians reveal that they have started looking for a new house for themselves; almost one in every third Indian believes buying a new house is the best investment option at present, according to the latest study, Post 'Generation-Rent' commissioned by Godrej Housing Finance (GHF). 

Manish Shah, MD and CEO, Godrej Housing Finance, said on the matter: "The pandemic has brought about a clear shift in preference amongst Indian consumers. They are gravitating towards future-proofing through long-term investments. With affordability at an all-time high, there has probably never been a better time to buy a house, which is both an important element of asset allocation and a key pillar of financial security. That said, customers believe that this change requires enhanced support from their financial partner to advise and guide them through this long-term commitment." 

Industry experts predict a continued uptick in the coming months, easing the long period of pent-up demand across sectors. The survey validates the sentiments as most of those surveyed stated they are now more open to investing in a property of their own divagating from the earlier notion of being labelled as the 'Generation-Rent'. 
 
Specifically, around 62 percent of Indians highlighted that they now preferred purchasing their furniture, car, home, and wedding apparel rather than renting them as this provides them with greater stability in future.
 

The study also found that 25.5 percent of the Indians consider owning a home the second-most important aspect defining 'personal security', with job security leading the chart with 40.6 percent voting for it.  
 
Flexibility on policy, credibility and transparency of the brand, digital offerings, and relative turnaround time for processing are the top factors that drive the selection of financing partner. This can be attributed to consumers becoming accustomed to the on-demand gratification of their requirements aided by digital technology, experts believe. 
 
Also, digital-first and frictionless processes are perceived as both an advantage and a starting point for consumers while choosing today's financing brands. Companies and services that offer end-to-end digital solutions gain an edge in consumer preference over more traditional financing models. 

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