Buying a house is no small feat. It’s a huge expense that often requires considerable investment from your side. But owning a house of your own is also an incredible feeling and continues to be an aspiration for millions of people. There’s nothing like returning to a safe and comfortable abode, which you can proudly call your own. It’s completely normal to be confused between renting vs buying a home. In today’s cosmopolitan and globalized world, you may be in Mumbai today and in London tomorrow. So, you’re probably wondering, “Is it really worth buying a property? Should I buy or rent a house?”
Here’s breaking down this dilemma further to help you decide better. Here’s all that you need to know about renting vs buying a house and why buying a house is a better choice
Advantages of buying a house
As you can see, renting a house has several advantages but in spite of that, there is an ever-increasing demand for buying a house. Buying a house comes with several irreplaceable benefits, that only grow with time. So if you’re still deciding between renting vs buying a house, here’s why buying a house should be in your aspiration list:
In spite of all the ups and downs in the real estate market, past and present trends suggest that a house is an appreciating asset whose value only increases with time. If you take the bold step of buying a house today, you can be sure that the house will have a much higher value in the future. Appreciation depends on a lot of factors such as location, the current state of the house, and neighbourhood amenities. You can further increase the appreciation value by investing in renovations and home improvements as well. A rented property has no appreciation benefit. This is one of the most important benefits when it comes to buying vs renting a home.
2. Long term investment:
Buying a house is an excellent long term investment. There are several benefits to investing. A savings account gives you an interest of 4% per annum. An FD account will give you about 6% and an RD 7-8% before tax. A mutual fund investment, on the other hand, will give you 10-15% based on market conditions. This will ease the burden of buying a house and will enable you to do some quite comfortably. Also, the house is yours once you’ve signed the final cheque. It’s an investment for your future and your future generations too. A rented house is not a long-term investment. In fact, it’s not even an investment, but merely a transaction. This is another advantage when it comes to buying vs renting a home.
3. Easy home loans and tax benefits:
Today, buying your dream house is affordable and easier than before. You no longer need to sell ancestral land or go through a tedious approval process to get a home loan. Leading banks and financial institutions today offer home loans at very affordable interest rates, as low as even 7% and a long payback period. In fact, people have around 30 years to pay back their loans. So really, taking a loan is not a major hurdle today. As your income increases with time, you’ll be able to pay back your loans comfortably, without worrying about property tax.1
You also enjoy tax deductions when you take a home loan. Under section 24 of the Income Tax Act, you’re allowed to claim upto 2 lakhs per year on home loan interest. Under section 80C you can also claim upto 1.5 lakh on the principal amount. Buying a home is not easy but also great for your pockets, as a tax-paying citizen. So the next time you’re wondering whether to buy or rent a house, think about how much you’ll be saving!
4. Emotional security and certainty:
In a rented home, there is no certainty about your stay. You may be evicted anytime and searching for a new house all over again is cumbersome and painful. Finding a good rented house is not so easy either. Rents are high in several prime localities, especially in Pune, and finding a suitable house is no easy task. Owning a house, on the other hand, is all in your hands. You get to choose everything. And there’s no issue of ever being kicked out of your house. You can be emotionally assured that this is a stable asset that is not going anywhere. We all seek certainty and stability in our lives and a stable home makes us feel a lot better and peaceful than a nomadic life.
5. Pride in homeownership:
A home is a lot more than a place you just return to after a hard day’s work. It’s where most of your life happens. It’s where you grow with your family and start a new life. It’s a gateway to a cornucopia of all things exciting. And owning a home certainly comes with a sense of pride. You can design your home as you please. You can paint the walls however you want and you can make your home an extension of who you are. You get to enjoy great amenities and form meaningful, long term relationships with your neighbors. A rented house will simply not give you this freedom of choice. You are at your landlord’s mercy.
The choice between renting vs buying a house doesn’t have to be this difficult., a home of your choice in the long-run has inimitable benefits such as great property value, tax benefits, community living, emotional peace, and stability. Especially in today’s world, where working from home has become part of the new normal, one requires a stable home to live peacefully and happily.
At The Jairaj Group, we offer a wide range of homes with the best amenities across top residential locations in Pune. Our access to the best resources, transparency, and timely deliverance on promises ensures that you get the best home buying experience.