Every individual dreams of owning a house. Everyone seeks answers to a question that comes to mind of the majority of the population: to own a house or to take it on rent. Whichever option you opt for depends entirely on your financial health, lifestyle, and personal choice. B
Renting a property requires lesser responsibilities and more flexibility than homeownership as you aren’t necessarily stuck down to your property. Being a Homeowner requires a regular cost—initially for the down payment and over the long run (EMIs in case of a loan).
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PROS OF OWNING A HOME
- You can enjoy privacy
- Value Enhancement
- In the case of Home loans, EMIs(fixed rates of interest) are stable
- Tax Benefits available
- Pride owner of a home
- Easy Remodelling
- Create wealth for the future
CONS OF OWNING A HOME
- Financial obligation (Long-term)
- All Maintenance Expenses
- Surrounding community ties like Orion One32
- High EMIs compared to lesser rent payments.
- Requirement of Initial Payment, Foreclosure costs
- A new house’s Value may not increase during the initial years
- Easy Relocation is not possible
- Commuting time if your job is far away
PROS OF RENTING A HOME
- Lesser payments compared to a house payment
- Easy Relocation in case of any such situation arises
- No Maintenance and repairs cost are involved
- Credit requirements are less strict
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Pros of Renting:
- You get more flexibility and freedom. You can make a quick decision to move out, especially if you have a month-to-month lease.
- You have no responsibility to maintain the rented area. You can tell your landlord, and he or she will do all the repairs and maintenance for you.
- Renting may be cheaper than owning a house. Also, because you aren’t footing the bill for repairs or maintenance, you know exactly how much you will be spending at the end of the month.
- If you work or travel frequently, then renting a house or an apartment is the best decision as you won’t have to burden yourself with the responsibility of maintaining the property.
CONS OF RENTING
- Your landlord can increase the rent at any time.
- You cannot build equity if you’re renting a property. It will be your home, but it won’t be your asset.
- There are no tax benefits to renting a property.
- You cannot make any changes to your house or your apartment without your landlord’s approval.
- Many houses available for rent have a “No Pets” policy. So if you’re an animal lover, finding a place to rent that allows pets can be hectic.
- Your landlord can evict you at any time. He/ She can put the property up for sale to make a profit if real estate values increase.
- Rent
- Utility costs (like free water, Inverter facility, Beddings) for an additional savings
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- Tax deductions are not available
- Increase in Rent (year after year)
- No creation of asset
- Difficulty faced in having pets
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