Renting vs Owning A Home – Which is Best

It’s time to simplify one of the biggest decisions of your life – renting or buying a home!

Of course, buying a new home is one of the crucial decisions that anyone can make in their life!

However, many people get confused whether to still live in a rented place by paying a fixed monthly amount or invest a larger amount and move to own home!

Renting out a place does not require an immediate fund arrangement while purchasing an own space does! Yes, availing a Home Loan is always an option to cover your home finance!

Nonetheless, the final decision depends on your existing financial condition, ease of moving, availability of homes in good locations and other personal situations. In the same context, let’s provide some advantages and disadvantages of buying a home and renting one.

Purchasing a Home – Pros, and Cons

  • Buying a house is a huge financial obligation. Although the presence of an online home has made it easier to avail it at a best Home Loan rates, it depends whether a person can repay it or not.
  • An own home gives you a sense of belonging, safety, and permanency to your family.
  • Buying a house also means pocketing long-term investment vehicle which you can use to sell and grab a higher amount and buy a second home.
  • Your CIBIL Score also improves if you avail a housing loan. A housing purchase with a house financing also provides tax benefits on Home Loan as per the Section 80C of the Income Tax Act.
  • The disadvantage of having an own home is staying for at least 10-20 years. Thus, ensuring that the locality is safe and accessible to everything is vital.
  • If you are availing a Home Loan to buy a home, you will also need to bear some other costs such as down payments and extra charges if any.
  • You will also have to pay an EMI for the Home Loan, so you need to have a repayment strategy in place.

Renting a Home – Advantages, and Disadvantages  

  • Renting a home keeps you free from responsibilities of having an own house. For all maintenance issues, the owner is accountable, and you won’t need to pay!
  • You need not pay property and insurance for the rented accommodation
  • If you don’t want to live anymore, you can give a notice to your owner as per your rent agreement; pack your bags and leave.
  • The disadvantages of renting a place mean paying rent which you won’t get back or go towards any investment. Overall, you can consider it unproductive!
  • Dealing with the rules and regulations of the owner such as not returning late, keeping the house tidy, not playing loud music, not cooking some pre-determined foods could be a tiring thing to manage.
  • Home-based issues could come now and then with neighbors.
  • You won’t furnish the home as per your needs, and won’t be able to control how to keep it

The Bottom Line

Renting a place and owning a home has its share of pros and cons as you just went through! However, it’s always better to have own home and be at peace! If you think you can manage the repayment (EMI) of the Home Loan, you should go and buy a home. If not, till the time you don’t have the financial capability, live in a rented place!

The decision is up to you to decide as per your needs and affordability! All the best!

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Written by Aman Khanna

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