All of us want to have a house of our own. But given that a property purchase is a costly affair, not all of us can afford it. However, there are varying opinions on whether to rent a house or to buy one. Some believe that renting is a total waste of money which could be saved and utilized to finance a property purchase. On the other hand, some believe that renting opens the doors to more options in terms of location, type and proximity to the workplace.

The first and foremost advantage of home buying is asset creation. When you buy a house, you add an asset to your wealth portfolio which would also give excellent returns after 10-15 years. Owning a house brings stability to your life which is really important after you settle down with your family. On the other hand, renting provides one of the biggest advantages an own-home cannot offer i.e., flexibility. If you are in the initial stages of your career, renting is a viable option as you can change your house as per the needs of your changing lifestyle.

An owned home also gives you more liberty in terms of the type of house you want and how you want to decorate it. When you shift to a bigger and better house, the rents would also increase.

Some are also of the opinion that renting, in some cases, is economical than buying. If you choose to pay 60,000 as monthly rent , you would get a house in central area surrounded by all amenities. However, if you choose to pay the same amount as mortgage, you would get a house in a distant place with poor social infrastructure. Experts suggest that one can meet the lavish lifestyle needs better when on rent.

Home-buying is a really important decision and should not be taken lightly. Hence, your decision to rent or buy should depend on a few relevant factors. Be sure about how long you want to stay in that location. Also try to make a realistic future plan for at least 10-15 years. As long as you are sure that you can financially afford a house, buying is surely a smart financial move.

Themes that could significantly disrupt the commercial real estate industry- Delloitte

Commercial real estate redefined

There are a number of dynamics that have great potential to fundamentally change the commercial real estate (CRE) business over the next decade. Market disruptors in technology—including cloud computing, mobile, social media, and analytics—have primed the sector for some of the most important shifts in its history. It’s important that industry leaders continue to think about the longer-term strategic issues at play and how they can stay ahead of the disruptive forces.

In our inaugural longer-term outlook, produced by the Deloitte Center for Financial Services, we have identified four themes that we believe will result in significant disruption for the commercial real estate industry:

Collaborative economy

Disintermediation in brokerage and leasing

War for talent

The last mile

This outlook is part of Deloitte’s Financial Services Industry Outlooks series, which provides disruptive trends and bold predictions over the long term for banking, insurance, investment management, and commercial real estate.

Collaborative economy

Based on the premise of “on demand,” technology advancements, consumption and lifestyle patterns, and societal factors are driving the rapid growth of the collaborative economy. Companies such as Uber and Lyft are leveraging technology to offer on-demand taxi services, reducing the need for car ownership. This trend can be equally applied to commercial real estate, as collaborative space usage is gaining prominence in places where one lives, works, and plays.

Our CRE forecast:

The growth of the collaborative economy will have far reaching implications for traditional commercial real estate player

Disintermediation of brokerage and leasing

Technological advancements are increasingly automating brokerage and leasing tasks and activities, bringing down barriers between potential tenants and real estate owners. Developments in cloud computing combined with mobile and social media are resulting in cost-effective and real-time availability of property information and are enabling many leasing activities online. This has reduced entry barriers for niche and smaller companies.

Key takeaway:

Technology enhancements can further disrupt the traditional brokerage model that already obviates the need for human touch by revolutionizing data ubiquity and transparency, and by providing even more information to tenants.

Our CRE forecast:

There is every possibility that the current brokerage model will undergo a metamorphosis over the next decade.