One of the biggest debates that people have when it comes to housing is “to own or rent a home.” Buying the first home can be one of the greatest decisions for a salaried person. Buying a home involves some amount of down payment, EMI payments for a few years, etc. While owning a home is definitely a euphoric feeling, most people prefer renting as they feel that renting a home can be a comfortable and an easy option at the current moment.
However, with real estate market consistently booming and with more and more high-quality residential projects coming up from top builders, owning a home now can be the best decision for you.
Not convinced enough? We have compiled five reasons why owning a home is better than renting it.
Owned house is an investment
Irrespective of its size, type, or price range a home is an investment. When you buy your first home, you buy it mostly for personal purposes. In spite of that, there is no denying to the fact that the price appreciation for a home increases over time. Therefore, down the lane, when you sell your property or rent it, you can be assured of profits and regular rental income respectively. In exigency situations, you can always show you home as a security to avail loans.
Enjoy tax benefits
When you intend to buy a home and apply a home loan for the same, you are eligible for a tax deduction of up to 150,000 from the principal amount and up to 200,000 from the interest rates. Therefore, when you are buying your own home, you can significantly lower your tax outgo. What’s more, these tax benefits hold good for everyone irrespective of the tax bracket they fall under.
Reduced interest rates
This year has started with a good news for home buyers. The interest rates on home loans have dropped by 1 per cent. Public sector banks, like SBI, UBI and PNB, have already announced lower home loan interest rates, which starts at 8.5 per cent. This one per cent interest reduction will have a huge positive impact on homebuyers.
Pay EMIs instead of rent
The amount you pay on EMIs every month will be more or less same as your house rent. Renting a house in a good location can prove to be expensive. At least, if you pay EMIs, at the end of few years, your home will be completely yours, and you will be free from the loans. However, if you are living in a rental house for years together, in the end, you will still not have anything in hand. Furthermore, unlike rent, EMI, i.e. the fixed mortgage, doesn’t go up from time to time.
Gives you control over your home
So, do you want to paint your kitchen purple? Would you like to redo your wardrobes? Do you want to build a new closet or a bathroom? You will not have all this creative freedom when you rent a house. If you own a house, you can replace, renovate, and change things as and when you wish without a need for asking someone about it.
Provides stability to your life
When you buy your first home and move there, you are establishing deep roots in that particular neighbourhood or community. When you live in a rental home, you might have to relocate when the annual lease ends or when the home gets sold to someone else. However, when you own a house, your stability in the community gets increased, and you might also create some amazing, long-term friendships with your neighbours.
Gives a sense of accomplishment
Last but not the least, being a homeowner gives you a sense of accomplishment and pride. Buying a home is considered to be one of the biggest purchases in your life. Therefore, when you accomplish it, you will be content. After all, living in your own home will also bring in the sense of happiness to your family.
So, wait no longer – go ahead and buy your dream house now!
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