New Delhi. Every family wants a home where one can feel stability, comfort and security. But in today’s times the question of whether to rent or buy a house has become more difficult than ever. Rapidly rising property prices, changing jobs and changing lifestyle have made the question of Renting vs Buying a big financial puzzle. Especially for those who are balancing their savings, EMI and future responsibilities.
Many people believe that Buying is always the right step for the future, while some people say that Renting is more flexible and lighter on the pocket. The truth is that the right answer to Renting vs Buying a Home depends on each person’s lifestyle, income and long-term planning. Therefore, before taking this decision, it is important to understand the financial benefits of both the options so that there are no regrets in future.
Benefits of renting
The biggest advantage of living on rent is that you do not have to stay tied to one city or one house. In today’s world, jobs change locations frequently and in such a situation renting becomes a smart financial move. The special thing about Financial Benefits of Renting is that you do not have to worry about down payment, registration charges, stamp duty or heavy interest on home loan. You pay a fixed rent every month and can invest the remaining money in fixed deposits, mutual funds or any other investment which can give better returns than EMIs in the long run.
Many people also prefer renting because the landlord is responsible for repairs, maintenance, society renovation and unexpected expenses. This means that if any problem arises at home, it will not empty your pocket. This is especially beneficial for those who give priority to saving and want more flexibility in life.
Benefits of Buying
Buying a house is not only a financial decision but also an emotional and social step. By buying, you get a permanent address, the house becomes your own place and in the long run it increases your net worth. The biggest thing in the Financial Benefits of Buying is that after the EMI is over, the house becomes completely yours, whereas money is always spent on rent.
Property prices generally increase over time, especially in big cities. That’s why many people consider buying as a long-term investment. While taking Rent or Buy decision, it is also seen that with buying, the family gets a feeling of security. Things like children’s schooling, family stability and social prestige also strengthen Buying. If your income is stable and you plan to stay in the same city for a long time, then buying becomes a sound financial move.
wise financial decision
This comparison of Renting vs Buying is not straightforward as it depends on your income, job stability, future priorities and lifestyle. Renting is better for people whose job makes them change cities frequently because keeping the house vacant after bearing the burden of buying can be harmful. On the other hand, if you want to settle in the same city and can handle the EMI comfortably for a long time, then Buying can be the right decision for both your pocket and mind.
Apart from this, it is also important to keep in mind that taking a home loan is not just buying a house but also paying a huge amount in interest. Therefore, while taking Rent or Buy decision, it is important to see whether your income level and savings can comfortably handle the home loan. On the other hand, in Renting you have the freedom to invest which can give good returns in the long run.
