With home financing becoming a viable option for most salaried and business persons, we are faced with the dilemma of renting vs buying a home. To find an answer, you need to ask yourself a few questions first.
Does your profession involve a frequent change of location?
For individuals who have to regularly change their location due to occupational requirements, renting a home is a good idea. Renting a home involves little paperwork and also does not require a long-term commitment on your behalf.
Moreover, if you are in the initial stage of a career it may involve changes in the company, city or job profile. In such scenarios changing your residence is easier with a rented home.
Are you in the mid-stage of your career? If yes, then you should consider buying a home. At this stage individuals usually have family obligations and settling down in one location is advantageous.
Are you single or married?
If you are single then your space requirements are less than compared to a family. Most residential properties are built for small to large families. Therefore it becomes difficult to find a suitable property to buy for an individual. It is easier to rent a portion of the home. Not to mention, it turns out to be cheaper too.
Having a family brings with it certain obligations. Children’s education is a high priority for all parents. To provide standard and un-disrupted education, settling down at one place for the family becomes important. In such a scenario buying a home in a location having reputed schools and colleges is definitely advisable.
Are you adjusting type or the independent type?
Your nature also determines which option is best for you. Individuals with an easy going and adjusting nature often find it easier to get along with a property owner’s sometimes finicky demands. In India, the average annual rental return on property is 2% of its value whereas interest on a home loan is 8.5%. So the money you save can be utilized in other forms of investment or on lifestyle.
If you are the independent, no interference type of person then purchasing a home may be a better option for you. Property is a long-term investment that would also provide you value appreciation over a period of time. Also owning a property is considered a status symbol in most societies and a source of pride for the owner. There is an article on investing in property that you can read if you wish to know more about this topic.
So the decision to whether buy or rent property should be based on your career stage, parental status and last but not the least, your nature. If you like this article you can share it with your friends through the social media buttons given below.