Rent or to buy- Which is the best option?
A roof over the head over the years has emerged from being a basic necessity to a dire need. People associate themselves emotionally with their homes. Buying a house is treated like a milestone in most people’s lives. It definitely makes sense to invest in something that we live with for a lifetime. But the scenario also seems to be changing as many people fear the soaring land prices, property prices and construction costs. The dilemma between choosing to buy a house or to rent one is real.
If you are in the same situation and want help in making a decision, you are at the right place. Dive in reading, as we discuss the advantages of buying a house and renting a house. You can firstly understand what both scenarios have to offer you and then make a sensible decision.
Having a house is synonymous with having a safe life. The uncertainties and hassles of living in a rented house are all gone when one purchases a house of their own. The flexibility of customizing the house to match your own needs comes with a own house. People can sleep happily knowing that the roof over their head is their own and nobody can take it away from them. This sense of security is one of the major perks of owning a home.
Real estate properties are great assets that appreciate with time. Over the years the value of the property increases and can even be a good source of passive income through rentals. People owning a house can be assured that they are enjoying a property while its value increases without doing anything actively. Land is a scarce natural resource and hence the reason for its high value. Attractive capital appreciation is a strong reason that lures the home buyers.
Real estate allows the buyers to enjoy the leverage options through smart investing. Home buyers can make a smart move of renting out their property/home partially and can arrange for their home EMI from the rental income. Sometimes through proper calculations and right property choice home buyers can even make a profit by paying the EMIs through rental income. The rental income from the property can be used to pay the home loan EMIs while the house itself will appreciate and earn a profit to the house owner. This way home owners can wisely leverage the profits from their property.
Finding a rental home is a huge task. The involvement of brokers and the house haunting process can be a nightmare sometimes. Apart from that, having to renew the rental lease and going through the process can be avoided by buying a home. Incremental rents are also very costly as the average income increments don’t match up to them. The costs during frequent shifting for transportation, brokerage etc also add up to be expensive. Financial and emotionally, owning a home is less stressful.
One absolute favourite for people while buying a home is the feature of paying through monthly installments. Even though there is an interest rate attached for taking a home loan, EMI can still be beneficial. Homebuyers can build wealth by gaining ownership with each EMI payment done by them. This way with every EMI payment you not only get rid of some liability but also gain ownership. Along with this the appreciating property itself is a profit for the buyer.
Rental houses are known for the convenience they have to offer. May it be the convenience of choosing a home close by to your workplace, or enjoying a place in a lavish community, rentals are offered at a much lower price compared to buying a home. Comparatively lower prices, easy to find options across budgets, and having the liberty of choosing in preferred areas makes rental housing more convenient than the conventional home buying.
The responsibilities like paying property taxes, collecting rentals every month, taking care of legal aspects and other responsibilities are taken care of by the homeowners. This makes the renters free from any kind of additional responsibilities. People who prefer to spend some money instead of having to take up responsibilities can opt for renting a house instead of buying.
Rental properties don’t actually require active maintenance by the renters as home buyers take up the responsibilities. Renters are required to pay a sum of money every month for maintenance purposes and facilities like cleaning the premises, security, housekeeping, security charges are all taken care of by the owners of the property. This way renters enjoy a hassle free and convenient life by renting a home.
When financial aid through a home loan is taken for buying a house, the EMIs are usually higher than the monthly rent. This is because as the EMIs are paying a part of the home ownership is also attained by the buyers. But through renting a home, the renters get to enjoy the property with significantly less rent payment. Also as the homeowners pay for additional costs like repairs, tax etc., so the renters can live a stress free life.
By renting a house, you can also get access to various amenities in the communities. All you have to do is pay for rent and a membership amount which is usually less compared to regular amenities as you share it with the other members of the community. Communal areas like gym, parks, swimming pool, library, banquet hall can be enjoyed by the community members. This is a huge perk as you can save money yet enjoy the access to amenities.
Buying a home and renting both have their advantages. The unique perks that each have to offer can be carefully evaluated before making a final decision. However with uncertainty in the living conditions due to situations like pandemic and ever increasing need for owning a house you may have to think about it. It’s always better to look at both the sides of a coin. Choosing an option that is suitable for your personal goals and supported by the financial budget would be an ideal way to lead a stress-free and secure life.