By Soniya Gaonkar on Nov 2, 2021 10:00:00 AM
A house is made up of much more than four walls and a roof. It elicits a wide range of feelings and thoughts in us. It provides a sense of security for some, comfort for others, a mark of status and accomplishment for everyone.
But there's also the other side to consider. It has something to do with numbers. Buying a home/house is generally one of the biggest financial decisions in an average person's life; hence the financial component is very significant. Many people struggle with the question of whether to rent or buy.
So Here Are 7 Advantages Of Buying A New Home Over Renting:
1. Emotional Stability
When you list down the benefits of buying a home over renting, emotions top the chart. Because when you buy a house, you're giving your family a place to call their own. After a long day at work, a long drive, and constant stress, returning home to your own nest provides a sense of security and comfort that is simply unrivaled. After all, there's no place like 'home' where you can genuinely unwind and be yourself.
2. No Landlord Worries
You have power over your life when you own a home. You won't have to deal with a landlord; whether it's modest maintenance or a total remodel of your property, renting is a nuisance in many ways. Water, power, and practically everything else is all provided by the landlord - And all this carries arguments and stress.
3. No Compromise
Rent is an expense, and the usual trend is to cut back on spending. As a result, you may find yourself compromising on several factors such as location, size, and facilities. On the other hand, when you buy a house, you will make certain that the property suits your needs. So take these advantages of owning a home very seriously.
4. No Uncertainty
There is no anxiety or worry associated with the landlord's potential terminating the lease agreement prematurely if you own your own house. Furthermore, there is no need to renew the lease every year or re-negotiate the fee regularly.
5. Income Tax Benefit On Home Loan
You can save a lot of money on your taxes by repaying your home loan principal and interest. Also, keep in mind that renting is more expensive than just the rent you pay. Your rent is greater since you don't receive any interest on the deposit you pay to the landlord (which can be rather expensive in high-end areas) during the lease term.
Related Post - How to Save Tax on Real Estate Investment?
6. Your Own Asset Creation
Instead of paying rent, which is purely a cost, you might pay the EMI on your home loan, which would help you create your asset over time. Every EMI you pay effectively increases your home's equity. Plus, considering the home appreciation, your EMI will result in higher asset-building over time.
7. Home As An Investment
When you know you'll be staying in a place for a long time; it's a good idea to buy a home to give you a sense of belonging and permanence. You develop a sense of belonging to the city and its way of life. You have the impression that you have finally found your footing in life. Furthermore, property values typically increase over time. Purchasing a home entails increasing your wealth over time. Delaying your house purchase will necessitate a larger investment (in addition to having paid rent over an extended time).
But Deciding Whether To Buy A Home Or Not Also Depends On The Drawbacks. So after reading the 7 Advantages Of Buying A New Home Over Renting, Here Are Some Of The Disadvantages Of Owning A Home?
1. High Upfront Cost
A mortgage's closing expenses can range from 2% to 5% of the purchase price and include a variety of fees, such as property taxes, mortgage insurance, house inspection, registrations, taxes, first-year homeowner's insurance premium, and interiors. It could take up to 5 years to recoup those expenses.
2. Less Mobility
If one of the benefits of homeownership is stability, accepting an appealing job offer that requires you to pack and move to another place may require additional contemplation. However, the rapidity with which properties are selling is a counterbalance to this fear.
3. Maintenance Cost
Bending down to fit beneath the kitchen sink to fix a leak is a thrill for many who do it for the first time. When you own a home, though, you are the first line of defense for repairs – especially if you want to save money by doing them yourself. Some objects do necessitate the assistance of an expert. You'll be sweating not only till the air conditioner is fixed, but you'll also be writing a check to get the cold air flowing again.
Obviously, the advantages outnumber the disadvantages in this case. And, regardless of how you look at the subject of "rent vs buy," buying makes a lot of sense. A house purchase appears to be an appealing proposition with enhanced affordability due to increased income levels, higher disposable incomes, the availability of simple and creative finance choices, and tax benefits.
If you are scouting for projects in Pune and want to buy your very own home then you should definitely check out Kohinoor Group Projects in Hinjewadi, Wakad, Tathawade, and BT Kawade Road. The lavish 2 and 3 BHK apartments are straight out of your dreams and they certainly will fit under your budget. These real estate properties are some of the best in West India and they come with a whole host of amenities and unlimited lavishness. If you're looking to buy a home in Pune, visit www.kohinoorpune.com.