Short term and Long term benefits of buying a home
Whether to rent or buy has always remained a debatable topic. But what we fail to understand is that each of these depends on multiple factors that keep on changing from person to person. Buying definitely has an upper hand over renting in most cases. And not only from a physiological perspective, buying a house is one sound financial decision for your family. The real estate market is thriving and even from the investment perspective, there are lucrative rewards attached to buying a house.
Through this article, let us highlight 5 benefits of buying a home, be it from a short term or long term perspective.
Freedom
When you own a home, you don’t need to worry about rent increments year after year. Besides, if you are certain of staying in a city for more than 5 years, there is no point in renting. You will end up spending more on rent. Moreover, you won’t even have a home to your name in the end.
Instead, buying holds a lot of advantages. You can easily get a decent home loan and in many cases, the EMI’s would cost you less than or equal to rent. Owning a home frees you in ways that rental apartments never would. You won’t have to comply with the demands of the landlord or think twice before bringing friends or pets home. It will ultimately be your own home and you won’t have anyone telling you what to do.
Moreover, we all know the struggles of finding a good rental home, especially if you are a bachelor in the city. Why not invest in your freedom when you can without burning a hole in your pocket?
Equity and Investment
The real estate market is seeing only a steady incline. Your investment in property is going to reward you with rippled value. We agree that a house should not be considered an asset if you are going to live in one. But let’s consider this as an example. You are in your late twenties. You have gathered enough savings to pay a downpayment on your home and have a steady income to pay off your monthly EMI. You can buy a well-furnished small flat in a growing or prime area. A few years from then, when you would be in your prime earning years, you can sell this property at inflated prices and look for better properties that match your living standard. By this time you would have a better CIBIL score to secure a better loan.
Invest in a property even when you have a roof over your head in your twenties. This investment will reward you with rippled value in some years.
Future Options
The profound argument one makes against buying is that it ties you down for 30-40 years. But isn’t life the series of casualties and changes happening every day? Many people sell off their house before they finish paying it all off. They benefit through the inflated market prices of the land and use it to buy a better place or invest in a new venture. If not, they even rent it out for a year or two while they are on move and earn supplemental income. There are multiple things you could do with a property when you own it. It’s like an investment that won’t go to waste. Just be assured that you invest in a place that’s growing and will grow even in future. Choose a branded developer to secure your investments in real estate.
Tax advantages
When you are on rent, you don’t get taxation benefits. However, when you own a home, you receive tax incentives. Moreover, anything you spend on your house is an investment. It’s going to add value to your assets.
Ease in raising a family.
A rental home is not a sound option for when you are raising a family. You will have to move from one rental place to another every few years. This is quite a problem when you have small children growing up. With your own home, you don’t have to move homes. Your family will have a secure and stable life. You can conveniently remodel your house without any barriers as the need is in future. You cannot do this in a rental home.
In synopsis, a rental home accommodates you. But owning your house makes you free. The advantages of owning far surpass the rental advantages and it’s for your own good that you start planning right now. Planning for a house in itself requires dedication and discipline. You will devote your life to purposeful spending when you decide in making a long term investment like property buying.
What side are you more inclined towards?
Renting or Buying
