Owning a home versus living on rent: Which is a better long-term option?
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6 December 2018 - 10:00, by , in Property Trends, No comments

When it happens to live on rent versus living in own home, people who support the former often argue that a rental place costs less, as contrasted to owning a place. Those who prefer owning a house, cite the liberty that it grants. While owning a home is typically the desire of every Indian. But sky-rocketing property prices in the recent past have led people to opt for renting, rather than buying.

When it comes to discovering a long-term accommodation, we see what makes better sense. Living in a leased house or buying a property – and the factors that one should consider before opting for each.

However, if one is sure about the city in which one is going to stay in the eventuality. And has the required funds for the down payment and steady future cash flows, it is genuinely recommended to own a house. Owning a home forces savings. In the sort of home loan EMI payments, which most people would otherwise pay, if they rent a home.

Advantages of home ownership over rental accommodations

The main benefits of living in one’s own house, rather than a rented house are:

  1. A sense of assurance and dignity in home ownership.
  2. You will not have to face rising rentals.
  3. When you buy a home with a loan, you are already aware of the EMI required to be given over a long time.
  4. The future costs are anticipated and more durable.
  5. There is less likelihood of intervention in your life when you live in your own house.

How to decide whether to buy a house or live on rent

Experts suggest that youngsters can consider purchasing a home in the early stages of their profession. If they have a delegation to stay in a particular city. Even though it may seem hard to manage the EMIs initially. After 5-10 years when their wages increase, while the EMIs remain the same, it would be a moderately lower proportion of your salary. Moreover, the property values would have too appreciated multi-fold.

Landlords in most states also conduce to restrict the number of years that a lessee can occupy their house, due to the weak assurance provided by the law to the lessors. With lower interest rates and the government subsidy for first-time buyers of affordable dwellings, owning a home is now attainable for many more people.

Why owning a house may be a better choice than a rented home

Keeping a house could also generate additional revenue, in the form of rentals or from paying guests.
Rents may seem cheaper contrasted to the EMI in the short run but in the long course, it is far higher than the cost of the home and the rental value cannot be redeemed.
A homeowner can mortgage the property, but a lessee can’t mortgage a rental property.
A lessee may have to shift out of a rented home anytime, at the request of the owner.

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