Owing a home of their own is a dream millions of people fantasize about. A house bestows a sense of security and assurance to its owner. With various options available today it is possible to convert this yearning into reality. But whether to buy a house or rent it is probably one of the biggest questions that baffles an individual. Though several factors influence the rent or buy call, it is important to understand the repercussions of both – owning and renting property, before making any choice.
There are many advantages of owning an asset vis-à-vis staying in a rented premise. First and foremost you have control over the property. In a rented house you cannot make any changes without the landlord’s permission.You can never customise the house in accordance with your needs without the landlord’s approval, probably only carry out cosmetic changes.
Buying your own property is a sure shot investment for the future. On the whole property will always appreciate with time.
Buying a house is a forced saving. Whether you use your own funds or borrowed ones, you can be sure that the money is saved and invested and not spent. On the contrary, paying rent is an expense that you incur whereas your expenditure towards buying a house helps you to build an asset.
Owning a home is also a personal milestone in ones growth pattern. The earlier you attain this landmark, the better chance you stand to harvest greater long-term benefits.
Now, one would want to know the difference paying monthly rentals and monthly instalments for a property, because in the end you end up paying almost the same amount for both. Payment made towards buying property, helps you to build an asset whereas the amount paid towards paying rent and monthly instalment for your loan maybe similar, but the difference lies in terms of savings and investment that you make in terms of the latter. You can also claim tax benefits on both the principal and interest components of the home loan.
Living in your own house creates a long lasting attachment with people around you. Your neighbours and you live like a large family. This brings a sense of belonging not only for you but for your entire family. You are in control of your space.
Although renting a property allows you to have a space you can afford, as compared to owning property, it suffers from various shortcomings. You need to pay a security deposit, the rent increases every year, there is a risk of eviction and one can get only limited tax benefits.
Ownership of a house does not only guarantee a secure roof over your head, but can also prove to be a great nest egg and a savings medium.
On the flip side, owning an asset brings with it several costs and risks. Maintenance and replacement costs may escalate as your house grows older and there is always a remote chance of your property depreciating.
Renting a home is the best stake for those who seek affordability and litheness. Renting also allows you to shift to a better home, if your economic conditions improve.
So, to own or to rent, that is the question. Let your requirements and finances take the decision.
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