Is buying Home better than Renting?
By Ajay Saptaputre | October 25, 2017

Ownership of a house is a lifelong goal for majority of persons. It is one of the biggest objectives for any person in his/ her life is to own a house. It is one of the most expensive issue for many of us. Some buy their houses while working and some wait for their retirement for buying a house out of their retirement benefits.

People are emotionally attached to their own home in India. There has always been a question as to whether to buy a house or take it on rent. Some of the homebuyers may feel whether their decision of buying a house is right even after buying it.

There remains always a dilemma - Is buying home better than renting? However, there are multiple advantages attached to purchasing a house over renting it. Return on house property comes in two ways, one in terms of capital gains due to the appreciation in the home prices and secondly, through rental income.

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The best way to decide whether buy or rent for a person, is to look for his individual needs and the situations around him/ her to make the right decision. Following 3 points are to be considered befor making any decision:

• Affordability
• Rate of Appreciation of the house property
• How long one has to stay in that house?

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There are many reasons for why buying home is better than renting. These points are detailed below:

• Increase in property value in long run: It has been seen that in a longer run, the price of any house property increases. It will result into a capital gain for the owner. Sometimes, it even increases @ 10% or more.
• Dream come true: As it is a dream of most of us to have our own home, it helps in fulfilling this dream.
• Full freedom: You can make home improvement as per your choice. Nobody will come to stop you.
• No need to pay rent every month: Paying rent is just a waste of money, instead you can use that amount in paying back your EMIs of home loan.
• Low interest rate on home loan in India: Home loan interest rate is the lowest among all kinds of loans like personal loan, gold loan, business loan, vehicle loan, etc.
• can ask you to vacate your home: As you are the owner, no one can ask you to vacate the house, as may happen in case of a rented house where the landlord can do so.
• Tax benefits: The principle amount and the interest you pay on home loan are eligible for tax deductions under Income Tax.
• Sense of belonging and community: If you are residing in your own home, a sense of belonging automatically comes. Further, you may be involved in social activities of the community.
• No need to pay security deposits, non-refundable deposits to the landlord
• Don't have to pay moving cost: Renters have to pay to move their households either by hiring movers & packers or by renting a truck.
• Potential for rental income: In case you move in a different city, you can give your house on rent which will generate income for you.
• Helps improving credit score: When your make EMI payments on time, you can get better credit score.

While some think that owning a home is beneficial for them, renting is the better option for many people. Actually, it is a personal choice whether to rent or buy your own home. It needs to be remembered to discuss your family before making a hasty move in taking any decision and also you need to review the details and make the financial decision that is right for you and your family.

• Try to avoid buying property in under-construction apartments, even if the builder is giving best offers.
• Try to purchase a ready to move property.
• Compare interest rates of various lenders before applying for a home loan.
• Discuss you family before making any decision of buying a house.

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