Renting A House Vs Buying A Home

Considering that fact that purchasing a home can dig a big hole in your pocket, most young people divert their mind and begin their independent lives by renting an apartment. As they build their career, start saving and build a family, the need for buying an apartment, tops their priority list. Property rates in almost every metro city in India is ever increasing, the moment you feel you have sufficient money to invest in a property, you’ll realize that the rates have increased. Back then, in the early 2000’s that rates were pretty much affordable but if you Google the rates today, trust me its unimaginable. Although renting a home seems a better option at this point of time, both renting and purchasing a house comes with a set of benefits and drawbacks of their own.

Listed below are the advantages of buying a home

1. Building equity over time

2. Tax benefits

3. Opportunity of earning rental income

4. Sense of belonging and community

Reflecting upon the ever increasing property rates, investing a good amount in getting a home of your own today can ensure you guaranteed returns in future, this is what we meant by the first point, i.e. Building equity over time. Investing in residential projects in Pune or for that instance in any other metro city, can give you various tax benefits. Where as on the other hand, renting a home, would not just include a heavy security deposit, but would also include the brokerage amount that needs to be paid to the broker/agent and a month's rent in advance which sums up to a big amount. Investing in a project on the other hand will help you save more. Easy EMI’s and not so expensive down payments, are the key benefits here.

If you still aren’t convinced, monthly installments still hovering over your head, relax and take a deep breath, I have a solution for you. Keep a tenant. Depending upon the prevailing rental rates in your area, come up with a fixed rental amount and spread the news. The monthly rental amount can then be used to pay off your your EMI’s like it’s no big deal.

Dwelling in your own home will also render you a feeling of belonging and community which can’t be achieved from a apartment that does not belong to you. Although the people residing there, will not treat you any different, the feeling of being in home you own gives out good vibes and makes you a happier person.