Title: Know the basic difference and benefits of buying a home vs renting a house.
1Know the Basic Difference and benefits of buying
a Home vs Renting a House.
2- When looking to invest in housing, one is puzzled
as to what out of the two options are feasible in
the long run. - Is it fine to buy a home or rent and live in one.
- Following is a list of advantages and
disadvantages while investing in property and
renting a property. - Buying a house comes with a sense of stability,
pride and appreciation of ownership, umpteen tax
benefits. - Real estate is an illiquid asset and is
considered inappropriate for full time nomads.
3- Real estate is an illiquid asset and is
considered inappropriate for full time nomads. - Buying a house comes with a sense of stability,
pride and appreciation of ownership, umpteen tax
benefits. -
- Real estate is an illiquid asset and is
considered inappropriate for full time nomads.
4- Renting lets your move out with penalty on every
time your lease ends. - But, the downfall to renting an apartment or
house is that one needs to look out for housing
if in an unfortunate, the landlord decides to
sell the property. - One of the most overrated debate in the renting
industry is that one considers staying under rent
as a waste of money.
5- Although, renting doesnt help build equity, but
one needs to understand buying or renting a
property leads to financial investments. - Though the overall cost of property ownership is
higher compared to renting an apartment, the
monthly payment is considered to be somewhat
similar to the monthly rent payment. - Buying a house? Property investment tends to be
expensive and one needs to have cash in spare or
opt for a secure means such as home loan.
6- Housing Loans and finance institutions tend to
lend about 80-90 of the gross property amount. - The remaining 10-20 has to be arranged by the
lender. Hence, it is advised to have enough
amount handy. - The prerequisite to living in a rented property
is that the individual needs to pay a security
deposit to the homeowner, monthly rent payments,
shifting as well as brokerage charges, if any and
the annual increase in the rent.
7- Renting is considered as a hassle due to the
frequent change of location. - In an unfortunate event, the homeowner may intend
to sell the property hence resulting in immediate
evacuation from the rented space. - Home loan interest rates are to be taken into
consideration prior to applying for housing loan.
- The prerequisite to living in a rented property
is that the individual needs to pay a security
deposit to the homeowner, monthly rent payments,
shifting as well as brokerage charges, if any and
the annual increase in the rent.
8- Renting is considered as a hassle due to the
frequent change of location. In an unfortunate
event, the homeowner may intend to sell the
property hence resulting in immediate evacuation
from the rented space. - As a salaried professional, an individual tends
to receive a house rent allowance benefit when
the rent is paid under the Income Tax Act. - However, the individual will be unable to reap
the benefits of real estate capital appreciation
or own an property as an asset.