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. The government also helps homeowners by providing several tax benefits. When you shift to a bigger and better house, the rents would also increase. However, once you buy a home, there will be a fixed EMI to pay every month which is better from the viewpoint of long-term planning.
Some are also of the opinion that renting, in some cases, is economical than buying. If you choose to pay 25,000 as monthly rent in NCR, you would get a house in central area surrounded by all amenities. However, if you choose to pay the same amount as EMI, 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.