Purchasing your own home is a significant achievement. After you’ve established a reliable source of revenue, it’s considered the next right step. However, numerous factors are involved when purchasing a home, making this a rather time-consuming process. Renting an apartment could be a more practical and cost-effective solution. Nothing, however, compares to the safety and stability of owning a home. Is it preferable to purchase a home than to rent one? Now let us look at both scenarios..
Why is it preferable to own a home?
The adage of roti kapada makaan still holds good and will continue to, having a roof over one’s head is among a man’s three fundamental needs. A permanentaddressprovides a family with a sense of security, safety & great sense of belonging. Knowing that you have a support system in place for retirement eases your mind. Furthermore, it can be preserved for generations to come.
It lowers the expense of relocation
Owning a house in one of the prestigious residential projects in Mumbai eliminates the need for regular relocation. This can happen in rental housing for a variety of reasons. It’s possible that a spike in rent will make it expensive. It could also be the end of the tenancy agreement’s specified time frame.Constant relocating can be both exhausting and costly. Finding a new home to stay in, as well as loading or unloading all your stuff, takes time and can be grossly inconvenient.
An excellent investment
It is a valued possession in addition to having a high emotional resonance, real estate is regarded as a wise investment. Aside from exceptional conditions, the value of residential houses is known to appreciate. As a result, your capital increases. Not only that, but you can save money on your purchase by taking advantage of tax breaks.
Rent vs. EMI
Regardless of where you live, there will be a cost. When you live in an area that you do not own, this is in the form of rent. When you buy a house, on the other side, the payment is normally made through EMIs. This is a monthly expense, just like rent. However, the advantage is that each instalment takes you nearer to being mortgage free.
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Why is it preferable to rent a home?
It does not bind you to a specific location
A house is a tangible asset that cannot be moved. It ties you to the location where it is found. You rarely know when you’ll have to shift in today’s fast-paced environment. It could be because of a work move, access to specialised facilities, such as healthcare, or even a wedding. Having your own home limits, you in several ways. You may be obliged to select a path that you would not have chosen otherwise, limiting your potential.
There are fewer costs involved
Buying a house entails a host of fees.It’s not just about the EMIs you offer but also the down payment which is the first thing.This is a portion of the total price you’ll have to pay upfront to secure the space. Legal expenses, as well as other taxes and surcharges imposed by your bank, maybe implicated, depending on the circumstances. This is in addition to the cost of registration and any taxes that may be imposed on the purchase. You will also be responsible for paying property taxes each year after your assessment.
Whether you should buy or rent is determined by a number of factors, the most important of which is your financial status.
To conclude, Buying a property, would be considered the better alternative, apart from all the benefits that you and your family can enjoy and create good support system in a community life, the current interest rates for home loan are at a decade low making your home purchase all the more desirable and lucrative.
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