Renting Vs Owning A Home: Which Option Is Beneficial For You?

In the never-ending debate of whether to buy a house or continue renting in India, the scales often tip towards the former for several compelling reasons. While renting offers flexibility, purchasing a home emerges as the superior long-term financial decision.

Primarily, homeownership in India presents a host of financial advantages. Real estate values tend to appreciate over time, positioning homeowners for potential wealth accumulation. Moreover, stable housing costs shield homeowners from the vagaries of rental market fluctuations, facilitating better financial planning.

Long-Term Impact

Manoj Gaur, president of CREDAI-NCR and CMD of Gaurs Group, “Beyond financial benefits, owning a home bestows a profound sense of ownership, stability, and pride. Unlike renters, homeowners have control over their living space, fostering a deeper sense of belonging and community. Furthermore, the absence of landlord worries translates into freedom and autonomy over property maintenance and customization.”

Sachin Gawri, founder and MD of RISE Infraventures, said renting offers immediate flexibility, allowing individuals to adapt quickly to changing circumstances, while buying a house in India yields various advantages over the long term.

“Homeownership provides not only a sense of stability but also potential for investment growth, as property values typically appreciate over time. Moreover, owning a home can lead to more predictable housing costs compared to fluctuating rental rates. Additionally, homeownership comes with tax benefits, such as deductions on mortgage interest and property taxes, which can contribute to overall financial well-being,” Gawri added.

In addition to it, there are various loan options, such as home loans provided by financial institutions, significantly facilitate the process of buying a house in India. These loans often come with favorable terms, including competitive interest rates and extended repayment periods, which can greatly enhance one’s purchasing power, he said.

Nayan Raheja of Raheja Developers said, “Crucially, buying a house early in life serves as a cornerstone for retirement planning, ensuring a mortgage-free retirement and securing a legacy for future generations. Emotionally, homeownership provides a sense of security and pride, positively impacting overall well-being.”

Tax Benefits

Experts say tax benefit is also an advantage in buying a home. With deductions on home loan interest and principal repayments offering significant savings. Additionally, homeownership opens doors to rental income and enables customization and renovation, enhancing both property value and quality of life.

Neeraj Sharma, MD of Escon Infra Realtor, said, “Multiple factors determine individuals’ choices between owning or renting a home. Since the pandemic, we’ve observed a notable shift in decision-making, with more people opting for ownership over renting. This change is influenced by several factors, including increasing rental yields in Delhi-NCR regions. Consequently, individuals are leaning towards investment choices that promise long-term wealth creation.”

Ultimately, the decision to buy or rent hinges on individual circumstances and goals. However, considering the myriad benefits of homeownership outlined above, purchasing a house emerges as a prudent choice for those seeking long-term financial stability and emotional fulfilment in India.