Whether to rent a place or buy a home is a major decision that bothers half the population when they move to a new city or advance in their career. It is crucial because it affects your monthly expenses, lifestyle, and the size of savings you do over the years.
A home can mean comfort and security to some and status as a symbol for others. Every day, people of average income class juggle through various decisions and confusions for making a final call concerning renting an apartment or having a place to put down their roots.
With both the options, there are pros and cons to each of them that further widen the dilemma in people’s minds. When talking about renting an apartment or buying it, the inclination is often towards ownership, but generally, it is the monetary aspect that poses the major constraint. However, that can be eliminated by applying for a home loan at affordable interest rates.
Here are the reasons why owning a home is any day much better than living on rent:
Paying the monthly rent goes into your landlord’s pocket, but when you buy a home, the monthly installment you pay for it goes towards building your equity in that home. The same property then becomes your investment, along with a comfortable place to live.
Moreover, more equity gives you more credit access which means that if you find yourself in an emergency, you will have the option of refinancing anything against it.
No Landlord, No Agreement
Buying a home makes you a charge of the property and frees you from all landlord hassles. When it comes to repairs or renovating your home, you don’t have to look up to your landlord—neither for your home’s water or electricity nor for maintenance.
Additionally, there is no fear or stress for the untimely termination of the rent agreement and renewing it every year.
Availability of Tax Benefits
The biggest benefit of owning a home over renting is that you get to enjoy huge tax rebates. With home loans, you can enjoy tax breaks. Both the principal amount and interest you pay are eligible for tax deductions.
On the contrary, if you are the renter, your pay is not deductible; hence, you gain nothing on your taxes.
Sense of Security and Privacy
With a personal space to call your own, there is nothing that can describe your feeling. Having your customized nook where you can sit and relax for long hours after a tiring day adds up to the peace in your life.
When you have your own nest, you don’t have to be bothered by the landlord’s interference. You can keep and mend your home just the way you want, but when you rent, you will witness all the restrictions.