Renting a House or Buying One: Let Us End This Debate!
A six-figure salary, a happy and healthy family, and a home to live in are some of the goals that every Indian wants to achieve. In modern India where families are getting nuclear day by day, the need for a compact but comfortable home is constantly increasing. As the living standards are starting to grow, people are trying to find better homes to buy. But, is buying a house worth it? What are the pros and cons that come with buying and renting a house? How do we see and perceive renting in modern India? And, is renting becoming the trend? Know all the buying and renting mantras here!
Owning a home in Modern India – A necessity?
As an Indian, I can confirm that we all feel immense pleasure and a sense of accomplishment to own a house. Whatever the income or the state of living, owning a home is considered a necessity in India. It has become a sign of financial stability and is one of the parameters of a successful life. But, are there any cons to owning a house, or is it the best thing to happen to an individual? Certainly not! Because owning a home has its problems. Here are the pros of buying and renting a home –
Pros of Buying a House over renting one –
- Saves Time, Money, and Effort –
People who live on rent often have to move. Moving is a time-consuming and tiring process. It is heavy on the pocket as well. In the case of buying, there is no such problem as moving or shifting homes.
- It gives us a sense of accomplishment and responsibility –
As I mentioned earlier, we all feel accomplished once we buy a house. Moreover, it gives us a sense of responsibility as owning a house is a huge thing for Indian households. It is a matter of pride as well. Even today, people consider the size of one’s home as a parameter to judge their success. And when it comes to our pride, there is no one as competitive as us!
- Ownership –
When we buy a house, we enjoy its complete ownership. Even when we take a home loan, paying the EMI gives us the proportional ownership of the property every month. But we enjoy no ownership rights in the case of renting a house. We are just using someone else’s property and are paying them to use it.
- Worry-free living –
Those who live on rent are at the mercy of their landlord. Once they decide to sell a house or rent it to someone else, we have no choice but to hunt for a new shelter. But for the ones who own a home, there is no such headache as they are the sole owners of the property and can do whatever they want.
- Not just a house, but ‘real estate’ –
Real Estate is a booming business and investment asset in India. With investors enjoying returns from their property in Noida, Delhi, Gurugram, and other northern regions, it is one of the best assets to invest in to enjoy high returns in the future.
Pros of Renting a House –
- A better option for people who keep moving due to work/job –
There are many jobs, professions, and businesses that demand new postings in new locations now and then. For people who keep moving due to their work, renting is a better option.
- Suitable for bachelors/people who have just started earning –
Those who have just started earning and are not financially prepared to afford EMIs always prefer renting as it is cheaper. Also, these people are bachelors and hence have less responsibility and burden upon them.
- It is easier to find a house for rent than to buy a home –
While buying a house, one has to look for the neighborhood, the facilities, the infrastructure, etc. but while living on rent, one needs a home as they keep shifting and have a habit of changing themselves according to the environment around them. It is difficult to find a property around prime locations, but one can easily rent a property as there are people who buy them just to rent them further and earn passive income.
- Fewer Taxes and paperwork –
Buying a house comes with a lot of paperwork and charges. It is a time-consuming process as well. There are many legalities associated with buying a home and even the slightest of errors can result in penalties. There are taxes such as house tax to pay as well. In the case of renting, there is minimal paperwork and there are no taxes as well.
In the metro cities of India, people are slowly starting to treat renting and buying equally. But a large amount of the population still prefers buying over renting. As the generation is changing, the mindset of the masses is also changing. People have started thinking practically and are very conscious about their financial state. Also, as people from small cities or rural areas move to urban areas in search of jobs and better-earning opportunities, they prefer renting a home as no one wants to invest a huge amount of money in housing when they do not have a fixed source of income yet.
This debate is and will be endless forever. But the perks and the problems that come with buying and renting will change from time to time. Be it buying or renting, at the end of the day if we have a shelter over our heads, we should be thankful for it.