To buy or rent, that is the question. For most first time homebuyers the answer to this question underscores the decision. It is no secret that buying a home is a big achievement and involves a lot of saving and sacrifice. This enhances the value of a home even more. Renting, on the other hand, provides one the flexibility to move and live as close as possible to one’s workplace. To help you decide, we have listed some advantages you stand to gain when you invest in your own home:
Security and Pride of Ownership
The moment you step into your own home is a moment of pride, happiness and sheer satisfaction. All the sacrifices you made and the indulgences you deferred have culminated in the ultimate joy of buying your own home. Living in one’s own home gives you a sense of pride and ownership. Owning a home also gives you a sense of security; no worrying about a landlord raising the rent or asking you to look for other accommodation.
Certainty of Home
While renting offers you the flexibility of choosing where you live and the quality of the accommodation, it also entails quite a lot of uncertainty. For one, your landlord can decide to raise the rent or decide not to rent anymore. This uncertainty means changing homes frequently or being at the mercy of the landlord as far the rent is concerned. Owning your own home means you no longer have to worry about these concerns.
Rent vs EMI – Creation of an Asset
Each month’s EMI goes towards creating and securing the asset that is your home. On the other hand, each month’s rent is your landlord’s income without creating any value for you. An EMI is similar to an SIP or the monthly deposit in a recurring deposit, it creates wealth and value for you. However, rent is a monthly expense which provides no long term value. Thus, it is easy to decide between investing in asset creation or meeting an expense.
Best Ever Loan Interest Rates
Currently, the Indian homebuyer is spoilt for choice in terms of the home loan rates being offered by banks and financial institutions. Due to the COVID-19 pandemic and subsequent lockdowns, the government eased the financial burden of households by reducing interest rates. As a result, one can today avail some of the best home loan rates the country has ever seen. Lower home loan rates mean you can avail bigger loans or pay lower EMIs depending on the amount you choose to borrow and the period, as well as your credit score.
Tax + Other Benefits
The Indian tax system provides benefits for the homebuyer by reducing taxable income. Under various sections of the Indian tax code homebuyers can deduct, up to certain limits, the interest as well as principal component of their loan repayments from income earned. Thus, if you are repaying a home loan you get definite tax benefits. Additionally, under the PMAY (Pradhan Mantri Awas Yojana) scheme the government provides additional benefits on the interest component of home loan to eligible borrowers. In recent months, some Indian state governments also reduced the stamp duty rates on home purchases thus enhancing the benefits of homebuying.
There are definite benefits you can gain when you buy a home. In addition to creating an asset you create wealth as property appreciates in value over the years. The government also provides friendly tax incentives and other benefits to encourage you to become a homeowner as opposed to a home renter. Finally, you have the priceless satisfaction of living in your own home. So, isn’t it a fairly easy decision to make? Check out Svamitva’s Emerald Square which is just six months away from possession. The project, located in Bengaluru’s Electronic City, offers 1, 2 and 3 BHK apartments.