There is nothing new about the debate on whether to buy or rent your home, as both come with their pros and cons. The point is to see how bad the cons are towards buying or renting!
Long-term investment -Deciding to buy a home is a major decision and needs due consideration over a period of time with logic, reasoning and simple math. When you look at the larger picture, it becomes increasingly clear that it’s better to buy your own home as it’s a good investment that multiplies with time. It’s a tangible piece of property that you can pass onto the next generation or liquidate in times of extreme financial crisis – making it a great form of security.
Building equity – Contrary to the naysayers, the loans and EMIs end after a while for homeowners, but for renters, the outflow is forever. Investing the same amount of money – with a little extra maybe, could easily be converted into an EMI payment towards your own home. This would mean that instead of throwing away money on rent, use it to build equity, increase your wealth and own a home of your own at the end of the day!
Capital gain – The monetary value of a home increase over the years, but renters don’t benefit from this – except perhaps experiencing an increase in rent over the years! Homeowners can benefit by selling off the property when the cost has appreciated sufficiently and make gains.
Freedom of use – Your home is supposed to be your personal space to do with as you please. But for a renter, there are a lot of restrictions as they need permission from the landlord before making any changes. A homeowner meanwhile has the freedom to do just as he pleases- change the decor, paint it a different color or make additions to suit his style.
Repayments – The homeowner has the option of giving out the home, fully or partially for rent, and use the funds generated to pay his loan EMIs. This way, he increases his own wealth, while the renter gets to pay towards his landlord’s EMI’s. It’s better for the renter to pay towards his own home instead of paying towards someone else’s home every month!
Relocation – While some may argue that renting is better for those who get job transfers, it really doesn’t matter as the home can always be given out to generate income while the owner is away…
Returns – For renters, there are no returns or creation of wealth by renting since the property will always belong to someone else. The renter also has no guarantee that his lease will be renewed the next year and whether the rent will remain the same….
Hope you have a better idea on buying and renting now!