Own a home instead of renting one? 10 Reasons why.

08/10/2022

Own or Rent? This is an important question which we keep asking until we buy a home. While renting in India is typically lucrative given the lower rentals, there are many advantages to owning a home. We have listed out the top 10 reasons which might help you take the right decision.

Tangible reasons:

Home ownership is an excellent way to build equity and wealth over time.

A home is a great investment and can appreciate in value, providing you with a nest egg for the future. If you use leverage ( Home Loan), you can get a great return on your initial down payment over a period of time.

Renting might seem cheaper in the short term, but it only goes towards paying the Home Owner’s EMI while you end up with no Asset at the end of the day. You may argue that you instead choose to invest the differential (EMI less rent) in other investment alternatives, but when you do not have a compulsory EMI payment at the end of the month, there are chances of financial indiscipline wherein you tend to spend the surplus capital instead of investing it in a disciplined manner.

A home gives you the stability of a fixed monthly mortgage payment, unlike renting where costs can rise over time. Also on an average, Indians close their home loans within 7 years, post which they have no more outflows towards EMI. Whereas, in rentals, the outflow keeps increasing @5% per every year.

Home ownership can provide important tax breaks, which can save you money each year.

Intangible reasons:

Owning your own home gives you the freedom to make improvements and changes as you see fit, without needing permission from a landlord. This has a very strong appeal for today’s Homebuyers.

A home is a great place to raise a family and create lasting memories.

Owning your own home gives you a sense of pride and accomplishment.

A home can be a valuable asset to leave to your children or other loved ones.

Thanks to the pandemic, the importance of having your own home, for the comfort and security it provides you, is replaceable.

Planning to buy a home? Make sure you get the right one! Do check out www.propsoch.com, India’s first Pro-consumer platform where you can get expert assistance in Discovery, Shortlisting and Purchase of your dream home.