There is something a lot of people ask themselves, “Should I buy or should I rent a home”. In this blog, we have attempted to discuss this debatable topic which will help to decide whether you should look into buying a home, or if you are better off renting.. The main reason behind this is the strong vision of our hon’ble prime minister Narendra Modi.

As we know that buying a home or a flat is one of the biggest financial decisions, some home buyers may wonder that whether they are taking right decision to purchase a home for them or not but, the average person changes their mind regarding their decision every five to seven years.

Many people have first desire to get a dream home but sometimes it is not possible because of their financial issues. For this, the government is providing an ” affordable housing scheme “ and home loan facilities. This has been a revolutionary step in making your dream of a own home come to reality.

However, in case of rental home you will not get exactly what you dream of and there will be a little freedom to remodeling it.

There are many benefits of buying home as compared to renting home:

    • Once you’ve paid off your mortgage payment, your home will be yours and you needn’t have to worry about monthly rental payments or installments. On the other hand, the rental home will give you an added burden of monthly rental which can also rise anytime depending on market value and your landlord.
    • When you buy a home, you can spend your resources on its up-gradation and improvement with time.
    • There are some instances in which the cost of ownership can be less than renting.
    • Own house can be set for reverse mortgage during your golden years making it for a much- needed source of income but rental homes it is not possible.
    • In buying homes it is possible to get tax benefits but in rental homes there less tax benefits.
    • You can build equity (when the home’s value rises while the mortgage debt falls as you repay it) but you don’t build equity in renting.
    • The buyer has control of the property and realizes that the acquisition of the home is a capital gain but in rental home there is no such authority.
    • When mortgage payments are made on time, the homeowner can achieve a better credit rating but in case of rental home even if you pay rent on time, your credit rating remains unaffected.
    • The buyer experiences fewer restrictions. There are a fewer number of rules that the homebuyer must have to follow, which includes restrictions as far as pets, children, and noise goes.
    • The buyer experiences tax advantages Up to $10,000 in property taxes and interest on up to $750,000 of mortgage debt can be itemized for tax deductions. Interest on second mortgage debt of up to $100,000 is also deductible provided it is obtained to build or substantially improve the homeowner’s dwelling house.
    • Choice will be limited in case of rental home but in buying home choice will not be limited.
      Sometimes, it is cheaper to buy homes than renting in long terms.