Why should one buy a house instead of renting?
There is always lots of discussion going on all over about whether one should buy home or rent. Equally strong arguments have been given for and again both sides.
Many people begin their independent lives by renting an apartment. Gradually, as life progresses, they build stable careers, prosper, save and get suited up to start families, and then the question pops up. “Shouldn’t I have a home of my own?”
And with this question come hell lot of complex calculations related to owning a house. The cost of buying is so high. A fair share of one’s saving and future income gets consumed. Then there are questions like How big house I want? , How suitable is locality?, Are there good schools nearby?, What if I have medical emergency? Does my career allows me to settle down ?
Clearly, making decision to buy a home can be equivalent to studying a rocket science. It requires lots of thinking, researching, relying on one’s intuition and millions of other things. We cannot answer all your concerns in a single article. Yet first and foremost question that one need to answer first. That is :
Should I Buy House Or Rent One !
That question we will address for sure. And here are our arguments in favour of buying instead of renting.
Life Long Security : A self-owned home is a sign of their independence. It makes you your own lessor. Specially in India, owning a house is an investment for life. You can move, transfer; shift around as much as you want if your professional life demands so but a mental satisfaction that there is a permanent abode one can go back to is most fulfilling. Buying a house offers potential rewards of lifelong security and stability like you have never experienced before!
Buying House Is An Investment : Have you heard, “Rent is an expense while mortgages build equity”. If you are on rent none of your money spent on rent creates any equity for you. But if you have bought a house, every installment you pay is like an investment and, a very profitable one, considering the rates at which we have seen the property prices shooting. One benefit of buying is generating the possibility of earning more than you invest by selling off the property in a few years from the appreciated value of the property. Consequently, owning is better than renting. Isn’t it a wise decison to buy a home?
Rents Are An Expense Forever : Every month what you pay to your landlord is an expense that, as stated above, does not create any investment value. And in case you decide to rent forever, you have billed yourself an amount for life every month.
Tax Benefits : Indian Government has introduced significant changes in laws, regulations have fuelled up housing development and decent rates teamed up with affordable tax/stamp duties provide a level playing field to the common man for building a house of his own. One can save thousands of rupees a month- especially if they can get their hands on low mortgage rates, successfully itemize their tax deductions and willing to live for 5-8 years, which is the average time that any Indian conventionally lives in a house before shifting again.
The list of benefits can go on and on. Thus in our view it is better to put your money to good use by transforming “wasted” rent payments into “mortgage” payments that will actually help you attain a tangible asset.
We would like to know what you think. Do comment what is your view.Tags: buy a house