Why are People Back to Renting Homes Rather Than Buying?
Dec 20, 2017 Home Trading Steps
New changes in the real estate laws have definitely made the dream of owning a house much easier. The landlords are seeing the rise in demand for the properties as the potential buyers are looking forward to investing in them.
Unaffordability and the all time price hike is the reason that most people choose to be tenants for as long as they can. However, it must not be mistaken with the choice some people have made to stay in the rented house.
The obvious question remains the same, why would anyone want to live in a rented house when one can own it? Is renting a good investment? When a person buys a home, a lot of things turn into his favour. With every EMI they are closer to owning the property. The money one pays as rent is going to someone else’s pocket and is not reaping you any benefits. Living in your own home gives you a sense of security and safety. No one can give you a sudden notice to vacate the place. You can bring changes in your own house without being questioned or having to seek permission. Also, owning a property elevated your status in the society.
Young investors these days have a different view and reason to prefer renting over owning the house. When you rent the house, you are not tied to a long term investment. Buying a house is an investment and one cannot afford to go wrong with it. With renting, you have the freedom to choose the property to live in of your choice and the present needs.
When you take a home loan you cannot take any risk or afford to land up in any situation which may lead to you losing your job. The feeling of security doesn’t come until you are done paying all the EMI which can be for 15 to 20 years. Landing up unemployed can hit a person’s EMI payments hard which can have adverse consequences.
Most of us move to a bigger city to get a job and are mentally prepared to relocate when the opportunity arrives. In this case, buying a house, paying its EMI and moving to another city is not a viable option. It gets difficult to manage finances and things. Buying a house in a city is sometimes detrimental to one’s career graph. One might not be willing to put their property on rent and move to another city.
Renting a house provides you with the freedom that owning a home doesn’t for a long time.
Unaffordability and the all time price hike is the reason that most people choose to be tenants for as long as they can. However, it must not be mistaken with the choice some people have made to stay in the rented house.
The obvious question remains the same, why would anyone want to live in a rented house when one can own it? Is renting a good investment? When a person buys a home, a lot of things turn into his favour. With every EMI they are closer to owning the property. The money one pays as rent is going to someone else’s pocket and is not reaping you any benefits. Living in your own home gives you a sense of security and safety. No one can give you a sudden notice to vacate the place. You can bring changes in your own house without being questioned or having to seek permission. Also, owning a property elevated your status in the society.
Young investors these days have a different view and reason to prefer renting over owning the house. When you rent the house, you are not tied to a long term investment. Buying a house is an investment and one cannot afford to go wrong with it. With renting, you have the freedom to choose the property to live in of your choice and the present needs.
When you take a home loan you cannot take any risk or afford to land up in any situation which may lead to you losing your job. The feeling of security doesn’t come until you are done paying all the EMI which can be for 15 to 20 years. Landing up unemployed can hit a person’s EMI payments hard which can have adverse consequences.
Most of us move to a bigger city to get a job and are mentally prepared to relocate when the opportunity arrives. In this case, buying a house, paying its EMI and moving to another city is not a viable option. It gets difficult to manage finances and things. Buying a house in a city is sometimes detrimental to one’s career graph. One might not be willing to put their property on rent and move to another city.
Renting a house provides you with the freedom that owning a home doesn’t for a long time.
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