Why Rent? Be the Owner!
Aug 29, 2016 Home Trading Steps
Increasing migration to major metros and smart cities has led to the increase in renting practice. Many owners have converted it into business. However, the price of availing a rental house has been ever increasing. Tired of paying rent every month and abiding by rules and regulations of the landlord? Well, this write-up provides you with a permanent win-win solution.
Buy your own dream house. Although the decision revolves around a lot of dilemmas and at times renting wins but owning a house is always a judicious decision.
Here are some justification points on why buying is considered to be better.
Long-Term Worthy Investment
Investment on buying a house is like a dream come true. No matter what, valuation of your house increases with time. It is a kind of long-term investment with much better returns than any other investment plan. Hence, this investment is a least risky and financially secured investment.
Home Equity is Your Reward
A rented house is temporary while owning a house is an asset. It builds an equity. As per research, you can observe approximately 4% to 6% of the rise in property price. One your mortgage is paid, you can construct equity. What’s equity? It’s the amount after you deduct your home loan from the valuation of the house. For instance, you can enhance kitchen to increase home equity.
Save Tax
You gain tax reduction every year if you have your own property. It’s one of the components in your tax slab where you can show mortgage and property tax. Hence, indirectly your home purchase is subsidised.
Constant Payments
There is a trend of increasing rent every 11 months. But this is not in the case of your own house. It’s fixed every month as an EMI for the entire or at least very long period.
Secured Place for Your Family
As discussed earlier, rented place is not permanent. You may have to leave at some point. But if you have your own house there can be no urgency. No notice period to serve even if you want to leave the house.
Strong CIBIL Record
Your credit history becomes automatically good as you are bound to pay EMI on time. Hence, your image is appreciated and you are offered with other loans if required in future.
Private and Independent
Rented house may not have privacy and independence. For instance, you may have to live with the landlord. You need prior permission for any kind of renovation or changes. Owning a house solves all such glitches.
Mortgage – A Forced Saving
It’s an automatic saving scheme. The valuation of the house anyway increases every year.
Resale in Future if Required
Whenever you want, you can resale the house.
If you make the overall calculation, buying will be cheaper than renting a house. Sometimes, your priority focus shifts and you end up renting a house. It is fruitful for your savings and finances and evades small things while living on rent. So, why to pay rent when you can have it your own.
Buy your own dream house. Although the decision revolves around a lot of dilemmas and at times renting wins but owning a house is always a judicious decision.
Here are some justification points on why buying is considered to be better.
Long-Term Worthy Investment
Investment on buying a house is like a dream come true. No matter what, valuation of your house increases with time. It is a kind of long-term investment with much better returns than any other investment plan. Hence, this investment is a least risky and financially secured investment.
Home Equity is Your Reward
A rented house is temporary while owning a house is an asset. It builds an equity. As per research, you can observe approximately 4% to 6% of the rise in property price. One your mortgage is paid, you can construct equity. What’s equity? It’s the amount after you deduct your home loan from the valuation of the house. For instance, you can enhance kitchen to increase home equity.
Save Tax
You gain tax reduction every year if you have your own property. It’s one of the components in your tax slab where you can show mortgage and property tax. Hence, indirectly your home purchase is subsidised.
Constant Payments
There is a trend of increasing rent every 11 months. But this is not in the case of your own house. It’s fixed every month as an EMI for the entire or at least very long period.
Secured Place for Your Family
As discussed earlier, rented place is not permanent. You may have to leave at some point. But if you have your own house there can be no urgency. No notice period to serve even if you want to leave the house.
Strong CIBIL Record
Your credit history becomes automatically good as you are bound to pay EMI on time. Hence, your image is appreciated and you are offered with other loans if required in future.
Private and Independent
Rented house may not have privacy and independence. For instance, you may have to live with the landlord. You need prior permission for any kind of renovation or changes. Owning a house solves all such glitches.
Mortgage – A Forced Saving
It’s an automatic saving scheme. The valuation of the house anyway increases every year.
Resale in Future if Required
Whenever you want, you can resale the house.
If you make the overall calculation, buying will be cheaper than renting a house. Sometimes, your priority focus shifts and you end up renting a house. It is fruitful for your savings and finances and evades small things while living on rent. So, why to pay rent when you can have it your own.
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