Things the Renters Do Not Have to Worry About
Dec 20, 2017 Home Trading Steps
After a certain point in life, you see all your friends and relatives buying a house and making investments in real estate. Often you are tempted to do the same. But buying a house and taking EMI from the banks to fulfil the dream is a long term commitment. Apart from paying the EMIs for the next 15-20 years, you also have to pay the 20 percent of the money to buy the property. Banks generally pay up to 80 percent of the total amount of the house, the rest 20 percent is up to the buyer to pay for. The buyer is also supposed, to pay the stamp duty and registration charges etc. Your expenses don’t end here, after you buy the house and before you shift, you will have to do the interiors, buy the furniture, etc. All these together make a huge sum of money that a person should be capable to invest before taking the plunge and buying a house.
If you feel left out for not being able to invest in the house and are living on rent, we have a reason why you should be happy about living on rent:
1.Free to move:
A person who lives on rent is free to move to another opportunity if the opportunity arrives. They are not tied down to one city. When you buy a house there are many obligations that you supposed to fulfil and sometimes leaving a city even if the offer is more appealing, is not possible.
2.Nothing to lose:
If in case, a person lands into some financial difficulties and is not able to pay the rent on time or for a couple of months, then it can be a serious problem. But if the said person shares a good rapport with the landlord then the landlord might help him and understand the situation. The person can give settle the months of rent without any interest whenever he can. If a person has EMIs to pay, in such situation it can be one’s worst nightmare. Banks can charge you a penalty for the missing EMIs.
3.Paying too much in the name of EMIs:
It is a general perception that paying monthly rent is wastage of money while paying monthly EMI is an investment. This is not true on various levels. When you pay EMI, you pay it for some 15 to 20 years and at the end, you pay more money than the property is worth. The person who is paying the rent knows exactly how much he is paying and what will be the return. There is no scope of delusion in this case.
4.Easy to make an exit:
When you rent a house, you are free to vacate it and move to the location that suits your requirement and needs perfectly. While if you buy the house you are tied to the same house for a long time. Making an exit when you buy a house is not easy.
5.Renters save more:
When you buy a house, your money flow is channelized. You have dedicated sum of money going to different places. It becomes difficult to make more savings than the possibility. Putting extra money in the savings, can imbalance your monthly expenditure. In case of a renter, they are free to make put extra money towards the savings without having to worry about the imbalance of the household expenditure.
If you feel left out for not being able to invest in the house and are living on rent, we have a reason why you should be happy about living on rent:
1.Free to move:
A person who lives on rent is free to move to another opportunity if the opportunity arrives. They are not tied down to one city. When you buy a house there are many obligations that you supposed to fulfil and sometimes leaving a city even if the offer is more appealing, is not possible.
2.Nothing to lose:
If in case, a person lands into some financial difficulties and is not able to pay the rent on time or for a couple of months, then it can be a serious problem. But if the said person shares a good rapport with the landlord then the landlord might help him and understand the situation. The person can give settle the months of rent without any interest whenever he can. If a person has EMIs to pay, in such situation it can be one’s worst nightmare. Banks can charge you a penalty for the missing EMIs.
3.Paying too much in the name of EMIs:
It is a general perception that paying monthly rent is wastage of money while paying monthly EMI is an investment. This is not true on various levels. When you pay EMI, you pay it for some 15 to 20 years and at the end, you pay more money than the property is worth. The person who is paying the rent knows exactly how much he is paying and what will be the return. There is no scope of delusion in this case.
4.Easy to make an exit:
When you rent a house, you are free to vacate it and move to the location that suits your requirement and needs perfectly. While if you buy the house you are tied to the same house for a long time. Making an exit when you buy a house is not easy.
5.Renters save more:
When you buy a house, your money flow is channelized. You have dedicated sum of money going to different places. It becomes difficult to make more savings than the possibility. Putting extra money in the savings, can imbalance your monthly expenditure. In case of a renter, they are free to make put extra money towards the savings without having to worry about the imbalance of the household expenditure.
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