Having a safe and comfortable house is a priority for most people. With nuclear family set-ups becoming more popular these days, many people are moving out of their ancestral homes and setting up new homes for themselves. At this juncture, the person is faced with a very important decision – whether to buy a house or rent it?
Renting a house – pros and cons
Let us start by looking at the benefits of renting a house:
- Inexpensive –
The first benefit is that you don’t need to invest a lot of money when renting a house. It is therefore much cheaper than buying a house. Most landlords in India ask for a (refundable) deposit amount. You just need to pay that and then pay the monthly rent to live in the beautiful house. - Easy to move in –
You can move in instantly into a rented house. If you buy a house, you may have to wait for months or even years before you can move in.
Now, let us explore the disadvantages of renting a house:
- No return on investment –
The amount you pay as rent doesn’t come back to you in any way. So, there is absolutely no return on the investment you make when you rent a home and this is a big disadvantage. - Limited freedom –
You are often bound by the clauses of a contract when you live in a rented house. You are not given the freedom to do a lot of things and you may need permission from the homeowner even for the smallest of things such as changing a lightbulb.
Buying a house – pros and cons
First, here are some wonderful benefits of buying a house:
- Perfect investment –
Buying a house is a great investment. You make a large investment and you are bound to get huge returns from it. It also is an investment in forms of safety and security for yourself and your family. - Option to customise –
You can design your house in any way you please. You can also do whatever you want in your own home. There are no restrictions to word about and this proves to be very beneficial.
But there are certain disadvantages of buying a house too:
- Very expensive –
Buying a home involves huge amounts of money. In all probability, you need to take a home loan and this pushes you into debt as well. - Long term-commitment –
Once you buy a house, you are stuck with it for a considerable period of time. If you do not like something about your rented home, you can just pack up and leave and find another home. This cannot be done when you own the house. You will have to stick around till you can sell it and then move.
Both buying, as well as renting a house, have their pros and cons. You should weigh the pros and cons and then match them with your requirements to see which option is better suited for you.
