Home Loan EMI vs Paying Monthly Rent: Currently, one of the most difficult decisions facing homebuyers is whether to purchase a home or continue renting a residence. The majority of buyers today believe that renting is less costly than purchasing.
If you have the funds for a down payment and plan to remain in one place for the next 5 to 10 years, you should strongly consider purchasing a residence. This recommendation is based on equity growth, stability, tax advantages, and investment potential, all of which make purchasing a residence with a mortgage a better long-term option than renting. However, the rule may not apply to everyone, and individuals may select either option based on their personal and professional circumstances.
Joint Home Loan: Weighing the Pros and Cons
Home Loan EMI vs Paying Monthly Rent
Benefits of Paying Monthly Rent
- There are no maintenance or repair costs, which is one of the benefits of renting a home. This means that your landlord is responsible for all maintenance, upgrades, and restorations if you rent a property. On the other hand, homeowners are responsible for all costs associated with property repair, maintenance, and renovation.
- If you need to relocate for work or personal reasons, you can easily vacate a rental property by providing a 30-day notice. This requires considerably less labour than selling a property. Additionally, renting may make it easier to pursue employment opportunities in other cities.
- Access to a variety of facilities that may not be included in the purchase of a home or may be prohibitively costly when purchasing a home is yet another advantage of renting over purchasing. Numerous landlords, for instance, provide tenants with complimentary fitness centres, saunas, community rooms, underground parking, and much more.
- The current rental market provides a variety of residences that are not necessarily available on the market for the purchase of homes. In addition to high-rise and low-rise apartments, townhomes with backyards, 1, 2, 3, and 4-bedroom residences, there are numerous other options for renters.
Advantages of Buying Your Own House
- Renting cannot provide the same sense of security and stability as home ownership. Homeowners have control over their living environment and can customise it according to their preferences. It also fosters a stronger sense of community and belonging. Additionally, purchasing a residence provides a feeling of pride and accomplishment. It gives individuals and families a place to call home, resulting in emotional satisfaction and a sense of accomplishment.
- Once you obtain a mortgage loan to purchase a residence, you receive tax advantages. Deductions for mortgage interest and principal repayment under sections 24(b) and 80C of the Income Tax Act, respectively, can significantly reduce tax liability and increase overall savings.
- Property ownership permits long-term investment and wealth growth. Homeownership in India has historically demonstrated a positive trend, making it a possible source of wealth creation.
- Once you have purchased a home, you no longer have to worry about or interact with a landlord. This implies freedom from all worries, such as the dread of being asked to leave the home despite having committed no wrongdoing.
- Purchasing a property early in life is advantageous for long-term retirement planning. As the mortgage is paid off over time, homeowners can retire without a mortgage, reducing their financial burden in their golden years.
