Our home is our personal sanctuary. After a long day at work or school/college we all look forward to getting home and getting together with family. This elicits the much-debated question: is it better to own a house or to rent one? Purchasing a home is usually one of the biggest financial decisions anyone makes in their lifetime – finding your roots and claiming your territory, metaphorically speaking. The truth is that there isn’t really a perfect answer to this question, since it remains largely dependent on personal circumstances. However, we are inclined towards home ownership and here’s why:
Psychological security and the ‘dream’
Having a home of your own places you at emotional ease in terms of having a secure shelter for your family. It is almost always the end goal for anyone, the ‘dream’ to own a house – sooner rather than later.
Minimise uncertainty and landlord skirmishes
If you live on a rental property, you depend a lot on your landlord, from minor repairs to wall paints, electricity, water supply and even basic maintenance. Not only this makes skirmishes and unpleasant conversations more likely, it also increases the anxiety and uncertainty that your rent agreement might get terminated and you’d be left searching for another property and negotiating again.
Government and policy push
The government’s ‘Housing for All’ scheme under Pradhan Matri Awas Yojana – Urban, seeks to achieve affordable housing by 2022. The scheme has envisaged a housing shortage of 20 million that is being addressed by the granting of infrastructure status to the affordable housing sector and improving affordability for the home buyer. Check your eligibility for pmay scheme here.
We wouldn’t recommend that you think of home as investment primarily, but there is always the possibility of capital appreciation over the long term, more so if the location ends up receiving robust economic and infrastructural boosts. When you buy a home it also implies that you are investing in your wealth creation. The more you delay the purchase, the more you lose in the form of rent you pay over an extended period of time, not to mention that property prices increase over time. Once you’ve paid off the loan, the home is yours. Besides, if you live in the home for a long time, the costs are spread out over time. If the home appreciates more than you’ve paid in EMIs, interest, taxes, and maintenance over time, you’ve earned a return, or you break even. It is a win-win.
Rent inflation is unsustainable too, and this makes it an even more valid concern. Mumbai, for instance, witnessed a maximum rent inflation of 18% in 2018 in the Mumbai Metropolitan Region. Chennai, Bengaluru and Gurugram are also close behind at 15%, 14% and 11% respectively. The cost of housing in your area: In most cases, people rent because houses are just too expensive, but it all depends on the market in your area. If renting is extremely costly in your area, it might be more affordable to buy a home.
Easy Finance and Knowledge Access
The bottom line is: often it is wiser to rent, but mostly buying a house can provide you with matchless financial and emotional rewards. If you carefully understand the purpose real estate serves, crunch the numbers and account for the emotional hassles of moving every two years, then you might be inclined towards home ownership. Chances are the only factor preventing you from jumping on to the ownership bandwagon is the management of finances.
With the provision of flexible home loans available on Finserv MARKETS, you can make the transition from a tenant to a homeowner with no worry. A home loan offers you flexible repayment schedule and doesn’t charge for pre-payment or foreclosure. If you wish to escape the skyrocketing rentals, a home loan will equip you with the confidence to go ahead and get the keys to a place you can call your own. Additionally, Finserv MARKETS also provides value-added services like a property dossier detailing your financial and real estate health.
Another pivotal aspect of owning property is that living in a rental arrangement deprives you of a financial access opportunity in the form of Loan Against Property. A Loan against Property proves that your property is more than just a housing security; it is also a financial asset that can serve as collateral to help you raise a loan for a plethora of purposes. You can use a loan against property available online at Finserv MARKETS to fund your dream holiday, children’s education, sudden medical exigencies, wedding plans, or business related expenses, or even for purely financial or investment motives. When you buy your own house, you gift yourself a lifelong asset that can serve your further financial needs. Make the choice carefully!
“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”