Kodambakkam, a vibrant neighbourhood in central Chennai, is famed for its film studios, tree‑lined streets, and convenient access to both the city’s commercial hubs and residential suburbs. With rents rising and sale prices steady, many face the question: Should I rent here, or is buying a better bet?
1. Kodambakkam at a Glance
- Location: Between Valasaravakkam and Saligramam, 6–8 km west of Chennai Central.
- Connectivity: Multiple MTC bus routes; Vadapalani Metro station just 1 km away.
- Character: Mix of heritage homes, film studios (AVM, R.K. Studios), and modern apartments.
2. Why Kodambakkam Is So Popular
- Centrality: Close to Kilpauk, Alwarpet, and Nungambakkam for work or play.
- Transport: Easy reach of the city’s metro, buses, and arterial roads.
- Amenities: Schools, clinics, markets, and studios within walking distance.
- Community Vibe: Quiet residential lanes alongside a lively commercial strip.
3. Renting Costs & Considerations
3.1 Current Rent Ranges
- 1 BHK Flats (400–600 sq.ft.): ₹12,000–₹18,000 per month
- 2 BHK Flats (800–1,000 sq.ft.): ₹20,000–₹35,000 per month
- 3 BHK Flats (1,200–1,400 sq.ft.): ₹40,000–₹50,000 per month
On average, 60.9% of rentals in Kodambakkam fall between ₹20,000 and ₹50,000 per month .
3.2 Upfront & Ongoing Costs
| Cost Component | Typical Amount |
| Security Deposit | 2–3 months’ rent (₹40K–₹150K) |
| Brokerage | 1–2 months’ rent |
| Monthly Rent | ₹12K–₹50K |
| Utilities | ₹2,000–₹4,000 (electricity, water, internet) |
3.3 Pros of Renting
- Flexibility: Easy to relocate with minimal notice.
- Low Upfront: No large down payment, just deposit and first month’s rent.
- No Maintenance Headache: Landlord handles major repairs.
3.4 Cons of Renting
- No Equity: Monthly payments don’t build ownership.
- Rent Escalation: Typical lease hikes of 5–10% every two years.
- Limited Customization: Restrictions on painting or remodeling.
4. Buying Costs & Considerations
4.1 Current Sale Prices
A 1,000 sq.ft. flat thus costs ₹87.5 L–₹1.435 Cr, with the average around ₹1.37 Cr.
4.2 Upfront & Ongoing Costs
| Cost Component | Typical Amount |
| Down Payment | 15–25% of property cost (₹13 L–₹34 L for ₹1 Cr home) |
| Stamp Duty & Registration | 7% + 1% cess (₹8 L–₹16 L on ₹1 Cr) |
| Home Loan EMI | ~₹80,000/month for ₹80 L loan @9% over 20 years |
| Maintenance & Taxes | ₹3,000–₹6,000/month |
4.3 Pros of Buying
- Equity Building: Every EMI increases your stake in the
- Appreciation: Adjoining areas see 5–7% annual value growth; Kodambakkam likely similar.
- Customization: Freedom to modify interiors and finishes.
4.4 Cons of Buying
- Large Upfront Costs: Significant down payment and fees.
- Maintenance & Repairs: Owner bears ongoing upkeep.
- Market Risk: Property values can stagnate or dip in downturns.
5. Rent vs. Buy: Cost Model
Let’s compare renting a 2 BHK (900 sq.ft.) vs. buying the same flat over 5 years:
| Metric | Renting | Buying |
| Monthly Outflow | ₹30,000 (rent) + ₹3,000 (utilities) = ₹33,000 | EMI ₹80,000 + maintenance ₹4,000 = ₹84,000 |
| Upfront Cost | ₹90,000 (2 months deposit + brokerage) | ₹23 L (20% down + fees) |
| Total 5‑Year Outflow | ₹33K×60 = ₹19.8 L | ₹84K×60 = ₹50.4 L + ₹23 L = ₹73.4 L |
| Equity Built | ₹0 | ≈₹24 L principal repaid |
| Property Value (5 yrs) | N/A | ₹1 Cr×(1.07)^5≈₹1.40 Cr (+₹40 L paper gain) |
Renting costs ₹19.8 L over 5 years with no equity.- Buying costs ₹73.4 L but yields ₹64.4 L net benefit (equity + appreciation minus outflow).
6. Key Pros & Cons Summarized
| Aspect | Renting | Buying |
| Flexibility | ★★★★★ | ★★☆☆☆ |
| Upfront Cost | ★★★★★ | ★☆☆☆☆ |
| Monthly Outlay | Lower | Higher |
| Equity | None | Builds over time |
| Appreciation | None | Potential 5–7% yearly |
| Customization | Limited | Full freedom |
| Maintenance | Landlord pays | You pay |
7. Other Factors to Consider
- Job Stability & Duration: Plan to stay >5 years? Buying makes more sense.
- Interest Rates & Tax Benefits: Home loan interest (Section 24) and principal (Section 80C) deductions reduce net cost.
- Lifestyle Needs: Do you need to move frequently, or is stability your priority?
- Market Conditions: Watch for oversupply—Kodambakkam has limited new launches, so risk is lower.
8. How to Make Your Decision
- Assess Timeline:
- <3 years: Renting likely cheaper overall.
- >5 years: Buying can yield net gains.
- <3 years: Renting likely cheaper overall.
- Calculate Cash Flow:
- Can you comfortably afford higher EMIs plus maintenance?
- Can you comfortably afford higher EMIs plus maintenance?
- Evaluate Investment Goals:
- Prioritize equity vs. short‑term liquidity.
- Prioritize equity vs. short‑term liquidity.
- Check Loan Eligibility:
- Get pre‑approved to know your EMI capacity and interest rate.
- Get pre‑approved to know your EMI capacity and interest rate.
- Perform Break‑Even Analysis:
- Find the point (in years) where buying costs equal renting costs.
- Find the point (in years) where buying costs equal renting costs.
9. Step‑by‑Step Checklists
9.1 Renting Checklist
- ✔️ Set rent+utilities budget
- ✔️ Shortlist areas near Vadapalani Metro & bus stops
- ✔️ Visit at different times to gauge noise/traffic
- ✔️ Inspect water pressure & power backup
- ✔️ Read lease: deposit, escalation, notice period
- ✔️ Get landlord’s ID & property papers copy
- ✔️ Document room condition with photos
9.2 Buying Checklist
- ✔️ Fix budget & get home‑loan pre‑approval
- ✔️ Research micro‑locations (e.g., United India Colony)
- ✔️ Compare ₹/sq.ft. rates: ₹8,750–₹14,350
- ✔️ Verify RERA registration & approvals
- ✔️ Conduct title search and legal due diligence
- ✔️ Inspect show flat & construction quality
- ✔️ Negotiate price, parking, and payment plan
- ✔️ Sign sale agreement, pay stamp duty+registration
- ✔️ Track construction, plan for possession and handover
Conclusion
In Kodambakkam, renting offers low upfront costs and flexibility—ideal if you’re in Chennai for a few years or prefer minimal responsibilities. Meanwhile, buying demands significant capital and higher monthly outlay but builds equity, leverages tax benefits, and taps into ongoing capital appreciation (5–7% per annum).
Your best choice depends on how long you plan to stay, your cash flows, and whether you value ownership over flexibility. Use the cost model and checklists above to guide your decision—whether you end up paying rent or EMIs, you’ll do so with clarity and confidence in Kodambakkam’s dynamic market.
Source : Fulinspace.com