In his 27 years, Anil has lived out of his suitcase. With his Father’s transferable job, Anil’s family has become accustomed to moving frequently. Now, after five years of his permanent job, at last, he can think of settling. Now he is faced with a serious question – Rent or Buy a House.
What would be your reply?
Here we are bringing out a few points for you to consider.
Advantages of Buying a House:
- Sense of security – Real Estate is an asset. Owning a house seems a favourable option for Retirement. It also secures you from financial burden during disasters like Covid wave and loss of income .
- Potential Appreciation – It is a belief that Real Estate prices sky-rocket. It is not the case every time. However, there will be an increase in the value in a decade.
- Tax Benefits – Home Loans and EMI will gain better Tax benefits.
Advantages of Renting a House:
- No Additional Payment – Monthly budget is always a concern in Indian homes. Renting a house means no EMI and other legal payments.
- Claim your rent – Salaried individuals can claim the House Rent Allowance (HRA).
- EMI higher than Rent – In some cases, the rent of a house in a particular area will be around 10000-20000. However, EMI for the same area might account for 30000 and above.
Buy or Rent has its pros and cons.
Consider these factors to decide –
3 Factors to consider whether to Rent or Buy:
- Planning to stay
One of the main factors is how often do you change houses? If you have decided to stay at one location for more than five years, it is beneficial to buy a property. Also, this can be a factor to consider for your retirement plan. In the future, if you are planning to settle in your hometown or near your loved ones, opt for investing in real estate.
- Financial Stable
Are you financially stable to carry out house payments? Does your family have any additional requirements?
- Handle EMI
Next to consider is your budget. Will you be able to handle the additional EMI? Are you just giving in to peer pressure? It is always advisable to prepare 10% of the total budget of the property as a down payment.
If any of your replies to the above factors are NO, renting the house is better.
Home Loan + Dream Home = Lead to stress
Bottom Line –
Buying a dream home has always been a goal in our Indian Society. However, without proper planning, this dream will be a lifetime burden.
We at Reachmaxx will assist you for your any property concerns. Our experienced consultant team is ready to cater to your every real estate need.
We are just a call away.