In today’s post let us look at parameters in Buying a Home Vs Renting a Home
Most of the home purchase transactions happen on availing the loan, which is detrimental to an individual’s financial health. People get into long-term commitment to pay the home loan EMIs by availing loan up to 80 to 85% of the purchase price.
With small savings wiping out and have to shell out EMIs every month, slowly they start regretting the decision of buying the house.
Some people pour all of the buffer amounts after expenses and EMI to clear up the loan principle availed. This happens at a cost of future needs (like Child Education / Marriage / Retirement) but an individual doesn’t realize it as he/she cannot foresee the future financial needs at that point of time.
|BUYING A HOME||RENTING A HOME|
|Needs huge lumpsum of Money||A portion of the monthly salary is sufficient|
|Property taxes to be paid||No burden of taxes|
|We should take care of Maintenance, Repairs, Whitewashing, etc||Landlord takes care of Repairs, Whitewashing etc|
|In Today’s world, Jobs are not confined to one city. Hence a person’s career opportunities are confined to the city where home is purchased||We can freely move to any city and take up career growth opportunities|
|We don’t have the option to move to another home but have to adjust If neighbors, locality people are unacceptable||We can freely move to other localities|
|EMI is a burden if the home loan is availed||No EMI burden|
|Price of House depreciates as the age of construction increases||No need to worry about depreciating value of construction|
Please feel free to comment if you think I have missed any points.