Pros and Cons of Rental Vs Buying a home: 

Pros and Cons of Rental Vs Buying a home:

In India, when parents have children, they are worried about a property they want to purchase. And where they will buy property, they will take large EMI. It is better to rent when you start working instead of a large EMI amount.

Instead of following your parents’ advice of taking home, follow the pros and Cons of Rental property and buying property below.

Pros of Rental Property:

Lower Rents:  Your rent should be lower than your home loan EMI’s. Your rent can be 50 Lac for 2 BHK, but when you purchase the house, the down payment will be 40% of the total amount, and 7% will be your EMI amount every month.

Down Payment: In early, like when you are in starting phase of your carrier, you don’t have much more amount for the down payment. You need only one or 2-month security deposit amount for renting.

No Allied Cost: In Rental Property, you don’t need to pay any property tax, Maintenance bills, repair bills and parking.

Ease of Job Shifting: If you have rental property, you don’t have to worry about the shifting due to your job.

The flexibility of Location: You can decide your location according to your requirements in the rental property.

Pros of Buying Home:

Building an Asset: Whatever amount you are spending on rent, that amount you can use to pay the EMI of your home, and after some time, that home will be made your property.

Tax Benefits: Due to Section 24, you can deduct your tax up to Rs. 2 lakh on interest paid for your occupation.

Higher Appreciation and Low-Interest rate: Current ongoing market home loan interest is low, like 6 to 7%. Property prices also fall as compared to last year.

No landlord Issue:  No need to suffer from Land Lord. You will be the owner; you can live according to you; no buddy will be there to give rules and regulations.

Cons of Renting Home:

Rent Rise: Besides rising annual income by 7 to 8%, Landlords can increase housing rents, and you need to pay that.

No tax benefits:  You will not get any help with tax.

Society Limitation: You can avoid society’s rules and regulations, including pets, vehicles etc.

Cons of Buying House:

More Expensive: Buying a house is more costly than renting a place. You have to pay for maintenance, Property tax, Repairing etc.

Illiquid Asset: Real estate has lower Illiquide, which means if you have any problem, you can sell your house immediately.

Depreciation:  In the last few years, we all analyzed that there is no guarantee the property price will be rise always.