Buying a home is a dream for every individual. However, not everyone can afford to own a house. It is your income, which determines if you can afford to buy a home or rent one. There are various other factors to be considered.

Capital Appreciation: Owning a house provides security and pride to a person. Real estate is a safe investment where capital gets appreciated, and you get tax benefits too. You don’t have to pay rent every month, and you can stay in one place without relocating frequently. You only have to make the monthly loan payment.  When you live in a rented house, you will have to relocate often, in which you lose money and time. 

  1. Financial Implication: if you want to buy a house, you should calculate the required capital needed as a housing loan. You will also have to consider the down payment and transaction costs associated with it. Other factors are the total loan amount, EMI payments, and house tax. As they affect your finances, you should consider everything.
  2. Investment Returns: Calculate the investment returns on the down-payment. You can also calculate the rent over the entire period of ownership. To calculate the monthly average cost of renting, add the maintenance cost to the sum of rents. While calculating the buying cost, add the maintenance cost to the EMI. Also, consider the affordability of housing loan interest rates. 
  3. Real-estate Market: As the real estate market keeps constantly rising steeply, owning a house makes it profitable. However, currently, the real estate market is in a period of a slump. If you have the resource, you can invest in a property. Else you can choose the renting option and wait for a further slump in the real-estate sector. 
  4. EMI: The EMI, which seems to be very costly now, will be a viable option as the years pass by. You will learn to control your income, save more, and spend less when you take a housing loan. Further, you can pay the EMI, just as if you are paying the monthly rent, plus you get additional ownership of the house in proportion. 
  5. Job Security: The most critical factor, which will help you pay the EMI at ease, is job security. Make sure you consider job loss, job changes, and affordability. When you buy a home early in life, you will learn the skill of earning and saving.

Paying the monthly rent is easier when you compare it to paying the housing loan interest rate. A middle-class person will find paying his EMI a big burden. Instead of depending entirely on the EMI, he should save at least a significant portion of the cost of investment and then take the risk of paying EMI regularly. The difference between paying the EMI and rent will always exist.