Rent v/s ownership
One of the most significant financial decisions in human life is considered to be none other than owning a home. A home is much more than just four walls and a roof. It kindles a range of emotions and thoughts in us. It is a sense of security; to some, it is about solace, and to others, it symbolizes status and accomplishment. But, not everyone prefers buying a home and instead chooses just to rent one. Today, let us compare both scenarios to understand the pros & cons of both homeownership and renting.
No hassle with the Landlord.
Not every tenant is fortunate enough to find a landlord who is more than a friend. And even if your owner is a nice person, you’d still have to make sure you abide by various conditions that come along with taking a house for rent.
Long Term Investment
A house in your name is considered one of the wisest decisions. Having a home gives you financial independence. It also provides you with returns over time, considering the value appreciation.
With your own home, there is no fear or anxiety caused by the thought of a possibility of an untimely termination of the lease/rent agreement. Also, there is no hassle of renewing the rent agreement every year and renegotiating on rent repeatedly.
Ease of Financing options:
Owning your dream abode has now become more manageable with the availability of easy finance options. You do not have to wait until your 40s or 50s to acquire your dream home. You can easily buy it in your 20s and be a proud owner of a fully paid off house by the time you turn 50 or even before.
You are building your equity.
Your equity is the difference between what you can sell the home for and what you owe. Equity raises as you pay down your loans. Over time, more of what you pay each month goes to the balance on loan rather than the interest, building more equity.
While looking at “rent or buy”, buying makes preeminent sense. With better affordability due to a surge in income levels, higher disposable incomes, availability of accessible and creative loan options and tax incentives, a home investment appears tempting.