One of the crucial decisions as an individual is to buy a home or rent it. The pros and cons, one need to check are copious and the dilemma only widens with myriads of suggestions offered by friends and relatives. Here, we present a crisp list of checkpoints which are indeed going to help you in making your decision of buying a home over renting easy.
The boom that India’s realty sector has witnessed over the past is unprecedented. Although in the recent time the growth in this sector has been slightly sluggish, the expectations for future are positive.
Let’s check the 10 advantages of buying a home over renting:
- Tax aids: One of the most important benefits that one gets is tax benefits. Home loan principal and interest repayments are eligible for tax benefits.
- Equity Building: Overtime, rent payment may not yield in any equity addition but buying a home will do. As time passes mortgage balance will reduce and equity will build up.
- Customization Benefits: A rented property cannot be designed to customise your personal desires. This advantage is only available with your own house. You can remodel it as per your changing needs.
- Complete Privacy: A rented house has a lot of landlord’s interference. Also, the lease agreement termination and revision is a headache. Owning your own home relieves you from all these hassles and offers privacy.
- Induced Savings: The concept of ‘forced savings’ comes to play when you buy your own house. You start saving more when you own a house.
- Credit Availability: These days with easy financing facility home loans procurement has become a trouble-free and quick process. All you need to do is wisely judging the procurement rates from different sources.
- Security and Stability: Owning a house brings to you immense emotional security. It also adds to stability as you don’t have to keep changing it in search of a new house with the end of lease/rent agreements.
- Fixed Cost: Unlike a rented house where every year the tenant faces a hike; you don’t need to worry about the same in case of your own house. The EMI (monthly instalment) is fixed.
- Sense of Accomplishment: A home of your own not only gives you a roof to shelter, but also a sense of accomplishment that the roof is your own; to live and create your own moments.
- Other Financial Benefits: Other than tax benefit, you are also entitled to capital gains if you plan to resale it after few years and most likely you will get an appreciated income.
If you want to understand more about investing in real estate, here is another checklist for you – Real Estate Investment
I’m looking to move because my apartment is getting too small. It’s good to know that one thing you can do with a home is customize it. I’m going to have to look into real estate to buy.
My brother is looking to buy a house for his family. I like how you said that home loan principal and interest repayments are eligible for tax benefits. I will share this article with him so that he is aware of the benefits of buying a house.
Great Information for real state investors. By reading this article investors will get confidence to invest in real estate, and one of the best benefits is steady Income -This is a no brainer! The majority of people invest in real estate for the steady flow of cash they earn in the form of rental income.
Now, this is something I like more about your article. You just keep it simple. This is the 2nd continuous article I’m reading of yours to learn more about real estate. Thank you for the amazing tips.