Buy or rent a property- an eternal question for all the home hunters. Nowadays, more people are staying away from their hometown to different cities for work. In such cases, renting a property may sound tempting. But buying a property will always be financially beneficial in the long run.
Here are 6 advantages of buying a home over renting-
- Easy financial options: Now buying a home becomes easy with the surging availability of finance options. People do not need to wait till their old age to buy a home with their lifelong savings. Buyers need to carefully select a home loan lender who can offer flexibility in managing the home loan repayment by tailoring the home loan EMI to suit all present and future income patterns of the buyer.
- Building own asset: Paying chunks as rent is a pure expenditure. Instead, one can pay the home loan EMI with that much amount and build own asset over time. With every paid EMI, the equity of the buyer in home goes up.
- Tax benefits on home loan: Home loan principal and interest repayment usually fetch the owner attractive tax breaks. On the contrary, the renters do not earn any interest on the deposit amount paid to the owners which is pretty high at prime locations.
- Home as investment: Buying a property in a city brings a sense of permanency and belongingness. Besides property prices generally appreciate over the long term. Delaying the property purchase will result in investing a higher amount which includes the paid rent over an extended period of time.
- No landlord hassle: Living in a rented property means dependency on the landlord for almost everything such as electricity, maintenance, water etc. Where owning a home means having authority on everything-be it the minor repairs to complete revamping of the entire home.
- No compromise: Renting a property means an additional expense which leads to cut down other expenditure. Therefore, people often compromise on different aspects such as size, locations and amenities. While owning a property means it will meet all the expectations of the owner.
With the surge in income levels, availability of easy and innovative loan options, higher disposable incomes, tax incentives etc a home purchase appears a viable proposition any day. Apart from a boost in acquired wealth, buying home gives a sense of achievement abiding by the social norms.