The decision to rent or own a house in India is an idea which have long-term implications on your finances and lifestyle. While some people prefer the pride of homeownership while some may value the flexibility and freedom of renting. Whether you’re a first-time homebuyer or a long-term renter, we will explore the pros and cons of renting vs owning a house in India, based on your personal circumstances. That help you make the best decision for you and your family.
Benefits of Renting House
There are several Benefits of renting in India
Flexibility:
If you have to move over a new location then renting a house offers a greater level of flexibility, as you can easily move to a new location.
Affordability:
In expensive cities like Mumbai, Delhi, and Bangalore, where property prices are quite high, renting is often more affordable than buying a home. As you can rent a 70-80 lakh property in 15k-20k.
Maintenance costs:
One of the biggest benefits of renting a house is that you don’t have to worry about maintenance costs, as it is included with your rent and landlord is responsible for maintaining the property.
No property tax:
As a renter, you don’t have to pay property taxes or insurance premiums, which can save you a lot of money.
Amenities and Sevices:
As a tenant you enjoy all the amenities and services with that property, such as security, parking, etc. , which can make your life easier and more comfortable.
Lower financial risk:
Renting a house carries a lower financial risk than buying a house, as you don’t have to worry about fluctuations in the housing market or the risk of losing money on a property investment.
Benefits of Owning House
As like Renting, here are the benefits of owning
Long-term investment:
Buying a house is considered a good long-term investment in India, as property prices have shown historically appreciation over time.
Tax benefits:
By owning a home anyone can get tax benefits such as deductions on the principal and interest paid on the home loan under Section 80C and Section 24 of the Income Tax Act.
Appreciation in value:
Property prices in India have been known to appreciate over time, making it a lucrative investment option.
Potential rental income:
Homeowners can rent out their property for additional income, which can help pay off their home loan or provide a passive income.
Sense of ownership:
Owning a house can provide a sense of pride and ownership.
Security:
Owning a home provides a sense of security and stability, as homeowners don’t have to worry about being forced to move due to rental hikes or on owner demands.
Inflation hedge:
A house can serve as an inflation hedge, as the value of the property typically increases with inflation.
Customization:
One of the most major benefit is you can customize yourr home according to your preferences and needs. You can decorate, renovate the house or add an extra room, without having to seek permission from a landlord.
Control over living environment:
As an owner you have more control over your living environment compared to renters, as you can make decisions instatnt.
Potential for capital gains:
Homeowners may also benefit from capital gains if they decide to sell their property in the future at a higher price than they bought it for.
Lower monthly housing expenses:
While the upfront cost of buying a house may be high but the monthly housing expenses can be lower than renting.
Sense of stability:
If you have children then, owning a house can provide a sense of stability and permanence.
Social status:
In the Indian context, owning a house is often seen as a status symbol and can enhance one’s social status.
Retirement benefits:
Owning a house can be a valuable asset for retirees, as they can use the property to generate income or sell it for a profit if needed. Additionally, homeowners can use their property as collateral for loans during retirement.
Cons of Renting house
Renting a house can be a great option for many people in many ways, but it’s important to be aware of the cons which were mention here:
Limited control over the property:
As a renter, you do not have complete control over the property. You have to stick to the landlord’s rules and regulations. So, as a renter, you don’t have complete control over the property.
Rent Hike:
Your rent may increase over time, which can make it difficult to budget and plan for the future.
No Investment:
When you rent a house, you are literally paying for someone else’s investment. You will not build any equity in the property, and you will not get any benefit from value appreciation of home.
No tax benefits:
Homeowners can get tax benefits on their property in income Tax Act, but renters do not have this option.
Restrictions on pets:
Many landlords have restrictions on pets, which can be a Heart-breaker and deal-breaker for animal lovers.
While renting a house can be a good option for some people, it’s important to be aware of these potential cons before making a decision.
In Conclusion:
The decision between renting and owning a house in India depends on personal as well as professional circumstances. Both options have their advantages and disadvantages, and it’s up to you to weigh them carefully before making a decision. Whatever you decide, make sure it’s a decision that works best for you and your future plans.