House Rent Vs Home Loan EmiImage Credit source: File Photo
In today’s time, everyone’s dream is to have their own house. Even if he has to take a home loan to buy a house. Because people who live by renting the house. He believes that by investing some more money in the house rent he is paying, he can buy his own house and pay the EMI of the home loan. There are many people who prefer to buy their own house because of living in a rented house. At the same time, there are some people who prefer a rented home instead of buying a home. Because house rent is cheaper than home loan EMI. But first of all you should check whether you have the advantage of buying a house or renting a house. If you have any confusion about this, here detailed information is being given about the benefits of home loan EMI by buying your house rent or house.
Owning a house is a significant achievement in present times especially in Indian households. It is also considered a better step to have a reliable source of income. But there are many things to consider before buying a home, so it can be a challenging choice. Renting a home can be a more practical and affordable option. Plus nothing compares to the convenience and security of a home profession.
Experts believe that even though owning a home is generally a dream of every Indian, rising property prices especially in cities like metro cities have made people prefer to rent rather than buy. On the other hand many people who can afford a home must choose between renting and buying. People in India who can afford a home give more importance to home ownership than those who find renting acts as a middle ground.
advantages of buying a house
On renting a house, the landlord can ask you to vacate at any time. Although owning your own home gives you the power to decide you don’t need to wait for the landlord’s approval. Additionally it enhances financial benefits. Renting a house prevents you from becoming a property, whereas buying a house is the best investment as it lasts a lifetime. Also, when real estate prices increase over time, you benefit from higher market value.
Increase in property valuation
According to data from real estate firm JLL, home costs have risen faster than earnings in the last 20 years. Because the rise in residential prices coincides with rapid growth. You can use this money as an investment to upgrade your ideal home and grow your portfolio assets. So now you don’t have to worry about rent hike, new conditions, or new agreement process as you are no longer a tenant.
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Benefits of Renting a Home
Due to rising property cost and other expenses, most people do not give priority to buying a house. Many working professionals believe that their income remains the same with rising expenses. Also, the rent you pay is much lower than your EMI. While this may differ from city to city, it is experienced in most metropolitan areas. Before buying or renting a house, you should know whether you have the advantage of buying a house or the advantage of renting it.
Let us tell you that there are many types of expenses in buying a house. But it is not just the EMI that you pay, but the down payment is the first thing that affects your financial condition. This is a part of the total upfront cost required to buy your home. Depending on the circumstances, related legal expenses and other commissions and charges may also be levied by your bank. Transaction registration charges and any applicable taxes are exclusive of this. But there is no hassle in a rented house and one is exempted from the charges and home loan interest on buying a house.
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Apart from this, by the time you pay the EMI of the home loan, you have invested twice as much money in buying the house as the principal amount along with the interest. That’s why it is most beneficial to take a house on rent instead of buying. Because renting a house is less expensive than buying it. Renters usually pay less for various amenities, acommodation charges, etc. than buyers. That’s why a rented house is preferred.
rent or buy a home
If you are going to buy your own house, then first of all calculate the expenses of buying a house and renting a house, otherwise you may have to repent later. Because renting a house is cheaper for common people than buying a house. That’s why at present people are preferring to rent a house instead of buying it. Because house rent is better than home loan EMI. At the same time, apart from EMI, many types of charges increase on buying a house. Which can affect your savings.