Friday 21 September 2018
Owning A Home V/s Living On Rent
Buying versus renting a house is an exemplary situation that everybody faces at some point in their lives. It is therefore substantial that we examine the advantages and disadvantages of both before reaching a conclusion.
Here are some qualitative factors that can affect your decision and you must ascertain how buying a home is highly advantageous over renting.
Factors that favour Buying:
Capital Appreciation: India is a developing nation and over long-term costs will prop up due to rapid urbanization and formation of higher paying employment. In this way, costs will undoubtedly go up over long-term.
Make Improvements: When you own a house, you can repair your home the manner in which you need. While if you live in a rented house, you need to maintain and follow all the conditions of the rental agreement, which will request that you not make any changes in the house.
Stability: When you are renting, you are constantly stressed over rental increments or when the landlord may decide to sell the house. While in your own house, there are no such concerns.
Constrained Savings: Once you choose to purchase a house, you will be compelled to put something aside for down payment and after that, you will be naturally saving when you pay the monthly EMI.
Tax Benefits: When you buy a house utilizing a home loan, you can likewise claim home loan tax benefits.
Value Appreciation: When you are deciding to buy a home, qualities like good schools, upcoming neighbourhoods, local employment, and even its proximity to other civic amenities are significant as your new house could end up being worth more than its buying price.
Privacy: Owning a home would definitely give you more privacy than you could have in a rental home. The privacy that homeownership can offer is invaluable.
Owning a home is a better choice over a rented home:
ØOwning a house could likewise generate extra income, as rentals or from paying guests.
ØRentals may appear to be less expensive compared with the EMI in the short run however over the long run, it is far higher than the cost of the house and the rental cost can't be redeemed.
ØA homeowner can mortgage the property, however, a rental property can't be mortgaged by an occupant.
ØThere is a sense of pride and security in home ownership.
ØThere is less probability of interference in your life when you live in your own home.