Buying a home is a big financial decision as it requires substantial investment. You need to find the right home to suit your specific needs, look for the best lender, go through the various processes to get the loan, plan your finances, and bear the repayment burden throughout the tenure, etc. However, all these hassles would be worth it when you get the ownership of your home and you can have your own space.
On the other hand, living on rent may seem to be an easier option as the rent would be much more affordable than repaying the EMIs. However, as your family grows, you may find it challenging to live in a small space. So, if you are wondering if home buying is better than renting or vice-versa, knowing the pros and cons of both can help you make an informed decision.
Advantages of buying a new home
One of the most obvious and significant advantages of buying a new home is that you can enjoy a sense of stability and security knowing that you own the place and you can live there with your family for as long as you want. Also, buying a home means that you have a significant asset for yourself, and it guarantees your child a secured future.
Today, getting the funds for buying your dream is easier than ever before. There are many lenders in India that are willing to offer housing loan at competitive interest rates. Also, many lenders offer customised home loan solutions to suit your specific needs. This means you need not deplete your years of hard-earned savings at once. Instead, you can avail of the loan and repay it in smaller instalments over a period of 15-30 years.
Buying a home in a metropolitan city like Bangalore would give you the chance to get an additional income as you can rent it out. Generally, there is a great demand for homes on rent in a popular location. So, you can easily find a tenant. Also, being a homeowner give you the flexibility to liquidate the asset any time you want and earn a decent profit.
Another significant benefit of buying a new home is that you need not avoid paying rent every month. With home loans in Bangalore readily available at affordable interest rates, you can pay the EMIs and get the home ownership at the end of loan tenure.
Drawbacks of buying a home
The property rates in metro cities like Bangalore can be quite high. This means you would need a big investment and getting a home loan. Not to mention, you have to bear the repayment burden for a long period till the end of loan tenure. When you apply for a home loan, you may have to incur other costs like registration fees, stamp duty, building maintenance charges, etc, all these can add to the overall home purchase cost.
Advantages of renting a home
Even if you are living in a metropolis like Bangalore, you can easily find a good home in your preferred location with affordable rent. Also, if you share the home with others, the rent would be significantly lower than paying the home loan EMI.
If you are in a profession that requires you to move to a different city often, or if you want to temporarily shift to a new city, renting a home would be a much better option.
Drawbacks of renting a home
One of the biggest cons of renting a home in a metro city is that you may have to compromise on your living standards because of lack of a big space and freedom.
So, renting and buying a home has both pros and cons. Assess your financial situation and long-term goals before making a decision.