Home Loan vs Rent: Is it better to live on rent or is it more beneficial to buy a house, these 7 things will solve your confusion
Buying your own house is everyone's dream, but a big price for this dream has to be paid in the form of home loan EMI. If you are also confused whether it is better to live on rent or take a home loan, then these few points can help you in taking the decision. Let us know about it in detail.
The Kalamkar News (New Delhi). In India, every child born in a middle class family is taught since childhood that when he starts earning, he should have his own house, his own car. Aniket had also been hearing the same thing, but when he got his first job at the age of 21, he did not have enough money to buy his own house. Now he started living in a dilemma whether to buy a house by paying huge installments or EMI of the home loan, or to continue living in a rented house.
If you are also confused like Aniket, then it is very important for you to know these few things. Maybe this will help you in taking the decision of choosing between a rented house or your own house.
Don't see your own house as an investment.
Generally, Indian people consider buying their own house as an investment, but this notion is not right in today's time, because investment directly means that how much return will you get on it? Now, if you want to buy a house for your own living, then before shouldering the burden of heavy EMI, assess whether your other expenses will be affected by it.
Buying a house also depends on many other factors. Know here…
- The decision to buy a house depends on a person's financial situation, responsibilities, assets and family income.
- Buying a house can be a goal of your life, but you have to keep in mind that Home Loan EMI eats up a major part of your income. Moreover, it does this for a long time.
- Home loan EMI is usually higher than people's monthly house rent. Therefore, before buying a house on home loan, it is important to check whether it will affect your other financial goals.
- Another thing is that buying your own house may give you stability, but with a rented house you get a lot of flexibility. That's why people give preference to rented accommodation at the beginning of their career.
- One good thing about home loan is that you can avail tax benefits from it. In the old income tax regime, you get tax exemption related to home loan under Section 24 and Section 80.
- In terms of tax exemption, rented house is also not behind. You can also avail tax benefits on this through House Rent Allowance (HRA) deduction.
- Experts advise that a person should not take a home loan unless he has sufficient savings. And he should not be in a position to make down payment up to 50 percent of the price of the property.