The difference is not just restricted to ownership when it comes to the purchase of a home and living on rent. There are some striking factors that are advantageous either in the case of the first option or the second, as have been elaborated here.
Equity Building
In localities that demand rents as high as affordable home prices, it would be sensible to purchase a home if you are eligible for it since it will help you in building equity. The value of your home appreciating with time will return you a sum higher than what you invested at the time of selling the property.
Tax Benefits
With the Union Budget 2019 offering concessions pertaining to residential Real Estate related taxations, you will be at the gaining end despite having to pay taxes for your property that you owe to the Government. Living in a rented house deprives you of such benefits.
Maintenance Charges
No happiness on this earth comes without an expense and so does the bliss of owning a home alongside the responsibility of bearing its maintenance costs. But that is not a valid reason to retard the decision of purchasing a home unless you are not in a comfortable financial frame.
Explore Yourself
Living in a rented home is necessary to find out your likes or dislikes regarding the apartment size, type of interiors and neighbourhood. Purchasing a home at a stage where your personal life or job is not stable will only leave you regretting when you won’t have the opportunity to change it no matter how much you want to. Instead, discover an array of purchasing options so that you can prepare yourself, accordingly.
To help you reach an easy conclusion, here we have listed the pros and cons of home buying and living on rent, respectively.
How Do You Benefit from Purchasing a Home
Firstly, you are in no way accountable to any other person and can revamp the look of your home as and when you wish to. Secondly, there is enough scope for you to build credit and equity. You can even avail of tax benefits.
What are the Disadvantages?
Expenses are involved apart from the mortgage payments and if the value of the home depreciates then the money invested by you is not worth it. The independence of remodelling comes along with the responsibility of timely repairs that would otherwise be taken up by the landlord in a rented home. You can’t ignore the large capital you need and also go through the hassles of upfront paperwork.
The Advantages of Living on Rent
You are free from the payment of property taxes and the maintenance responsibility. The depreciation of home value no more remains a matter of your concern. There is a possibility of building credit if your rent payments are reported to the Credit Bureaus by your landlord. You can shift as and when you feel the need. Besides, very less paperwork and upfront costs are involved in the process.
Living on Rent Has Its Own Drawbacks
Your choice of home is restricted to the vacancies available. Secondly, the rent value can increase or the property may be sold by its landlord and you have to set out on a home search even if you don’t wish to at that point of time. And you don’t know how many times you might have to face such a situation unless you have a home of your own. The chances of building equity or availing tax benefits are absolutely nil.
None of us has the power to predict our future but depending on the intensity of your present life events or the ones expected to follow such as downsizing of the home following your divorce or leaving your ancestral home to pursue your career you can opt to live on rent.
But if you have planned to settle or will be having new members in the family, then home buying would be the appropriate choice. But the thing you must take into account is that you have to bear with the home for several years even if it is bought at a tight budget. If you have that tenacity then well move ahead or hang on for the moment.
Hope, the reading was helpful. Confused with what to choose from Kolkata flats for sale that would fulfil your budget or area preference? Get in touch with transventor.in to get what you desire through our integrated network across the city and its fringes.
