Buying a home is the biggest dream that everyone has, and people spend their life getting their home at a preferred location. Majorly decisions are shaped by their personal goals and current financial condition.
A large number of people choose to live in a rented house instead of saving money to buy a home. People who cannot prefer buying their home will go with renting until they have sufficient money to spend on an expensive house.
Rented properties are popular in the region where people come for the job but do not want to make the place their residential house. Cities are flooded with people who travel from different places in the country for the job.
They own homes in their native place; thus, they look for temporary residents. Renting a house requires regular income; you cannot afford to possess a house in big cities.
Benefits of buying a home rather than renting
1) Building assets
Buying a home allows you to build certain assets over some time. Every amount spent on the house is worth it because, over time, the value of your home will go up, and you will get a good return in the long run. It is an opportunity for the people who are in the low-income group to build the equity that generates handsome profits in the future.
Spending a portion of your monthly income on a home loan is always worth paying the same rent to the third person. The amount you are paying as a mortgage comes with several benefits, such as TAX benefits, long-term property development, and security for your future.
When you rent the home, your hard-earned money is dripped into others’ bank accounts. You will spend your entire life renting the house and never find a safe place to live in old age.
2) TAX deduction
The government offers tax benefits to people taking home loans to buy the property. Property tax is reduced on the home loan, and your income tax will get various benefits when you buy a home using a bank loan. TAX benefits will help you to save more for your future.
3) No intervention from the landlord
When you own a home, you will be the sole owner of the place. Change the house’s structure or do anything to improve the property. Paint the wall in whatever color you like.
You cannot do anything in a rented house without the house owner’s permission. Also, there will be no landlord intrusions. Your home offers you extra privacy and safety. Enjoy the home that represents your personality.
4) New semi-furnished home
When you purchase a brand new property, the place is wholly fresh and has never been used by others. Brand new space brings more positivity into your life.
A clean new home will portray a blank canvas where you can tell your story. You will have fresh flooring, modern kitchen and bathroom tiles, and plenty of space to place home appliances. You can equip new electronics, decorative, and home appliances to elevate your interior style.
5) No monthly liability
Renting property consists of a monthly rent payment. No matter your financial condition, you have to pay the rent to the owner. You have to deal with no monthly liability when you own the house. Owning a home keeps you in the safe zone.
You will have less liability and stress. Stay as long as you want, no need to spend on maintenance, and do the renovation of the house on your terms. The house will reduce personal expenses significantly.
The saved money can be invested in various investment programs to earn long-term profit. Allow yourself to explore your potential by keeping the liabilities as low as possible.
6) Improve credit history
An increased credit rating keeps your financial position strong. Buying a home increases your credit rating because the financial institution considers the home your asset. Therefore, when they offer you a loan, the fund can be taken against your property. Financing companies and banks will provide loans at the lowest interest rate.
Rented property always considers a liability. The credit rating does not get affected by the leased property. Therefore, it is advisable to spend money on buying a home instead of renting it.
Conclusion
Renting a home has its positive sides, but if we consider long-term security, it is always preferable to buy the house instead of renting it. Buying gives you the freedom to rebuild your place the way you want.
Also, there will be the emotional attachment that you will develop with your home when you buy it with your hard-earned money. Because of all these reasons buying beats renting.
