alexa
Indianmoney.com Missed Call Number

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
Home Articles Buy vs Rent a House

Buy vs Rent a House

IndianMoney.com Research Team | Updated On Wednesday, June 19,2019, 06:06 PM

5.0 / 5 based on 1 User Reviews

Buy vs Rent a House

 

 

Should I buy or rent a house? This is a big question, which has to be answered considering your lifestyle, preferences, investment objectives, family needs, type of employment and so on. A majority of young people start their independent lives, staying in a rented apartment. They choose to buy a house once they have a stable job and start a family. By this time, the property prices would have appreciated big-time, making the purchase unaffordable. This is especially true in metro cities.

Want to know more on Residential Apartment? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Buy vs Rent a House

Benefits of Buying a House

  • Buying a home offers safety and security as well as increase in the value of the property.
  • The market price of a house property is expected to appreciate over a period of time, making this a profitable investment.
  • You may enjoy a peaceful living without facing the restrictions imposed by the neighbors.
  • Once you buy a house, it can be renovated or decorated according to your preferences and requirements.
  • You can rent the property and the monthly rentals can be used to pay the home loan EMIs if you had availed a home loan to buy a house. (This would usually be done for a second house).
  • When you avail a home loan to purchase a house, you get a tax deduction of Rs 2 Lakhs a year under Section 24 on home loan interest repayments and Rs 1.5 Lakh a year under Section 80C of the income tax act. First-time home buyers get an additional Rs 50,000 a year on home loan interest payments under Section 80EE.

See Also: Should You Buy A House Or Stay On Rent?

Demerits of Buying a House

  • A homeowner must pay property taxes, maintenance expenses and even avail home insurance.
  • The value of a house property may not appreciate if the location becomes less desirable. A Recession and high-interest rates are other influencers.
  • Tenants can easily shift from one location to another after serving the predetermined notice period, buying a home may not be a good idea if you are expected to work in different locations.

Merits of Renting a House

  • Renting a house property offers flexibility vis-a-vis owning a house and is not a long-term commitment.
  • Vacating a house is much easier than the headaches involved in buying a new house. 
  • Staying in a rented property is a good idea if you cannot afford to buy a house.

See Also: 10 Things To Consider Before Buying A Home

Disadvantages of Renting a House

  • You can neither earn return on investment nor create wealth if you reside in a rented house.
  • A tenant has no control over yearly rental variations that are impacted by inflation.
  • Unlike a homeowner, tenants cannot enjoy total freedom and cannot make any changes to the property.

Bottom Line

Buy vs rent a home is a healthy debate, which has been in existence for several years. Before you buy or rent a house, spare a thought to understand the advantages and disadvantages of each option and take a decision accordingly.

See Also: 4 Things Before Buying A Home

You May Also Watch

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich.

Related Articles

 

Did you find this article useful? You can Rate us
5.0 / 5 based on 1 User Reviews
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.