Confused between buying a house vs. renting a house? Well, you need not be because buying a house is far more advantageous than renting a house. Moreover, with the easy availability of home loans at affordable interest rates, you need not worry about arranging funds for buying your home. You just need to contribute around 10-15% of the cost of the property and the remaining amount will be financed by the home loan provider. If you are still not sure, here are 20 reasons why it is better to buy a house rather than rent it.
#1. No more rent:
The money you pay as rent is essentially an expense. In comparison, the EMI you pay on your home loan is an investment. The amount you might have been paying as rent can be utilized for paying your home loan EMI. This way, you don’t have to bear any major financial burden when you buy a house.
#2. No more security deposit:
Your landlord earns interest on the security deposit you pay, but you get nothing. The security deposit is essentially a dead asset for you. Why not use the security deposit as down payment for buying a house?
#3. No more documents/police verification:
Getting a house on rent is quite a cumbersome process these days. You have to provide various documents and also undergo police verification. When you buy a house, you will be freed from all such hassles.
#4. Capital appreciation:
The value of your house will continue to increase over the years. For example, a house that costs 50 lakh today may be valued at 1 crore after 10-20 years. In comparison, if you live on rent, you won’t be able to derive such significant monetary gains.
#5. Tax benefits:
You can claim tax benefits for EMIs you pay on your home loan. For interest component, you can claim deductions of up to Rs 2 lakh under Section 24. For principal component, you can claim a deduction of up to Rs 1.5 lakh under Section 80C.
#6. No more dealing with landlords:
Dealing with a landlord is always a problem, as it’s largely a one way street. In most situations, you have no other option but to follow the instructions given by your landlord. When you buy a house, you don’t have to deal with landlords.
#7. No more haggling over the annual increase in rent:
As soon as 9-10 months pass, the landlord starts giving you hints about the impending hike in monthly rent. You try to negotiate, but eventually, you have to heed to what the landlord says. When you buy your house, you don’t have to haggle for reducing the rent.
#8. Easy address verification:
As long as you live on rent, you never have a reliable address proof. You always find yourself struggling with things that require address proof such as passport, visa, etc. Once you buy your own home, you will have reliable address proof such as electricity bill, gas bill, and property documents.
#9. A place to call home:
We all have an inherent desire to have a place that we can call our home. Living in a rented house can never let you experience that feeling. You have to buy your own house to create something of your own that you can call home.
#10. Complete privacy:
Living in a rented accommodation means you can be interrupted anytime by the landlord. However, when you have your own home, you can decide whom to meet and at what time. You can enjoy complete privacy when you have your own home.
#11. Create your own world:
When you live in a rented accommodation, you have to follow the diktat of the landlord. But when you buy a house, you are free to create a world of your choice. You can use your favorite color to paint the walls, install stuff that you want, and do everything else that your heart may desire.
#12. Buy anything you want:
When living in a rented accommodation, we usually postpone big ticket purchases such as double-door refrigerator, large wardrobe, dishwasher, etc. We think it would be a pain to shift these when moving out. When you have your own house, you can buy anything you want.
#13. Come in and go out anytime:
When living as tenants, we may have to face restrictions on when we want to go out and come in. However, when we have our own home, we don’t have to face any such restrictions. We would be free to come in and go out anytime we want.
#14. Bring any guests you want:
At times, neighbors may frown upon tenants when they bring guests to their flat. Most people in a housing society have negative perceptions about tenants, which creates tension. When you buy your own home, you will not have to face such issues. You can invite any guest you want.
#15. An insurance against uncertainties:
Buying a house is one of the safest investment options. When faced with difficult situations, your house will work as insurance. You can get loan against your property and in extreme cases, you can even sell it.
#16. Focus on your work/profession:
Having your own home gives you a sense of security and it works like an anchor in your life. Once you buy a house, you will be in a better psychological state to focus on your work/profession.
#17. Right place to start a family:
If you are planning to start a family, it’s always better to buy a home. You want to have complete freedom and privacy, which can only be achieved when you have your own home.
#18. Complete freedom for children:
Your children are likely to scribble on the walls and keep destroying things around the house. If it’s a rented accommodation, your landlord could get very angry. When you buy a house, you can provide complete freedom to your kids. This is necessary for building confidence and self-esteem among your children.
#19. Make lifelong friends:
When you shift to your own house, many of your neighbors will be homeowners. Just like you, these people may also have plans to live there for a long time. It would provide you the opportunity to interact with your new neighbors and make lifelong friends.
#20. An asset for your family and future generations:
Your house will be an asset for your family and future generations. It includes your spouse, children, parents and your grandchildren. Whoever inherits your house can live in it or sell it, as per their requirement.
When buying a house, ensure that the property is located in a clean and peaceful neighborhood. You also need to check for connectivity, amenities and social infrastructure. All these factors will be crucial for ensuring an enjoyable stay in your new home. When these factors work in your favour, you will realize how advantageous it is to buy a house rather than rent it.