Why is owning a home more important than renting?

Buying or renting is a debate that has existed for decades. But buying or renting a home isn’t just about money; it is much more than that. A home kindles a range of emotions and thoughts in us. A home is a sense of security and a symbol of status and accomplishment.

There are many reasons why buying a home is a better financial decision in the long run.

Let’s look at some of the benefits of the same.

Capital Appreciation:

When you buy a residential property, you get the benefit of capital appreciation, which means that the price of a house increases over time, whereas renting a property does not offer this advantage. In contrast, the cost of renting a house continues to rise annually. If at all you wish to sell your house in the future, you can sell it at a higher price than you bought it for. This means that you can receive a fair amount of money when you sell your property, benefiting from capital appreciation.

Peaceful Living:

When you live in your own house, you don’t have to worry about a landlord causing any interference in your life. When you rent a house, there is a constant pressure of paying monthly rent. If you delay the rent payment, you might have to face the heat of the landlord. In addition to this, renting carries a risk because the landlord may ask you to leave the property at any moment. On the contrary, you don’t have to deal with such issues when you live in your own house.

Endless customization options:

Owning a residential property gives you the added advantage of customizing it to your liking. You need not request permission from anyone to apply wallpaper to the wall of the living space. When you rent, you don’t have any control over customization because the house doesn’t belong to you. In a rented house, customization is possible only after obtaining permission from the landlord.

Emotional Security:

Homeownership provides emotional stability. On coming back home after a day at work, the person gets a sense of calmness and stillness. There is a tendency to link the process of becoming a homeowner to feelings of pride, achievement, and emotional satisfaction. You are in charge of your surroundings and can make it your own. Renting a house does not give you the feeling of emotional stability that owning one provides you with.

Rental Income:

When you buy a house, you can earn a consistent rental income by providing it on rent. You can easily pay your bills by using this rental income. Government initiatives like Make in India and Startup India have created many job opportunities, which has resulted in an increase in the demand for renting houses in various parts of India.

Ownership of an Asset:

Buying a property is purchasing an asset for life. If you are taking a loan to buy a home, you will be paying a fixed monthly EMI. After you have paid your EMIs, you get ownership of your house.

Legal and Regulatory Aspects:

Renting residential properties in India can come with challenges, such as delayed rental agreements, poor maintenance by landlords, and disputes over rent hikes. Rent control legislation is unevenly applied, and therefore tenants experience difficulties. This is actually not the case when one buys a house. The Indian Government has established strict rules with regard to buying a house by introducing the Real Estate (Regulation and Development) Act (RERA). RERA has been introduced to protect the interests of the buyers against being cheated and exploited by the developers.

Cultural and Emotional Satisfaction:

In India, many people see renting as temporary. There exists a cultural understanding that home ownership is one of the major life aims, social status, and security as a context. The individuals who are living in a rented house may feel that they are just wasting their hard-earned money on an asset that they won’t be able to own even after decades. Owning a home is viewed as an emotional milestone. It is a common desire among professional individuals to own a dream house for parents and family, the purpose of which is to deliver maximum benefits and services to the family.

Conclusion

Although the process of renting can bring mobility, especially to the young population or those who shift locations frequently, the process of buying a house in India offers stability and the possibility of wealth accumulation through appreciation of property value.

Have you made up your mind to buy a house?

K Raheja Corp Homes is a reputed developer with decades of experience in the real estate industry.

K Raheja Corp Homes provides numerous projects across various cities, including Mumbai, Pune, Bangalore, Hyderabad, and Goa. Feel free to reach out to us if you have any questions about any of the projects.