What is the Importance of Buying a Home Instead of Renting?

What is the Importance of Buying a Home Instead of Renting?

What is more profitable, buying or renting the house? The decision about renting or buying a home depends on your financial situation. Each of these options has its advantages. Both options are acceptable. Everything depends on the needs you have.

So, buy or rent? Many people believe that the best option is to buy a house. It is said that renting is throwing away money, and buying is the most profitable way to obtain a home. The truth is that the purchase of a house is the most important financial operation that an individual faces in his life. So, what to do? Let us go for the most detailed way where you will see the renting vs. buying house pros and cons.

Myths About Buying a Home

Future Investment

For many people, this is a determining factor, and everyone cares about the welfare of their family. So, always see the future investment offer, from which your family can leave happily.  Buying a home ensure excellent cash compensation in both ways, if you rent it, you will get rental income, or if you sell after a period, it will give an excellent return on your investment.

Housing Never Falls in Price

Housing is a 100% safe asset. The people who invested in houses in 2016 - 2017, today have seen their heritage increased by 50%. With the clear view of the real estate market, experts say that there is a hike in demand for residential properties for sale in Hyderabad, especially in prominent areas compared to previous years.

Mortgage at Low Cost

The mortgage interests are subject to a fixed rate or variable rate. Many banks offering housing loans at low interest rates and is very beneficial for the buyer to pay monthly payment with less amount. Everything depends on the capital amortized and the number of years remaining to be paid.

Let us look at the comparison between the advantages of buying vs. renting a home in the below points.

Buy or rent? - Comparison

Advantages of Buying a House

What makes many people buy their own house or apartment? What benefits will you get by buying?

  • You acquire something of your own if you have a property — Home is your unique place where you can always spend your happy moments with family and friends.
  • You can make all the modifications you want. Every person would like to build their house according to their tastes, which is not possible with the rental home.
  • If you buy a house, you will not have to pay for a whole life. In a rental home, it is necessary to pay for every month because it will never be yours.
  • In general, housing prices grow in the long term. However, your money will not be wasted if you buy a home.
  •  If you buy a home with a mortgage, after a while, you pay it, and you will be absolute owners of it. In the case of rent, in the end, you are left with nothing.
  • The own house offers a sense of stability and security. In a rental house with often changing one place to another can disturb the peace of your family, especially if you have children.
  • You can generate passive income, and if one day you decide to move, you can rent the house and get a profit on it. If it is a big house, you can also rent a part of it.
  • A mortgage forces you to save automatically, if you are a person that money runs away between your fingers, paying loan amount will help you not consume this money.

Advantages of Renting a House

What are the benefits of renting the house compared to your purchase?

  • You do not need an initial fee (down payment) to rent a house. You can also move to a better place or area where you would not be able to buy a home but to rent.
  • In rent home, you can easily solve problems such as an annoying neighbour, the outside noise, not being able to have pets, etc.
  • Renting a house is a good option for those people who continuously change the city with an adventurous heart, also for people who, due to their employment, need to move around the city or country.
  • Renting a home can be a quick and effective option. You do not need to do the paperwork to acquire a place to live.
  • It is an easy way for young people who live independently.

Why Buying A House Is Better Than Renting?

You will not get any loss with residential investment because if you buy an apartment to rent, then you can get rental income. You can also renew it and sell it quickly for a higher price. So, buying the house is a good investment, and you can generate income.  Your own house is the best place where you live, spend time and enjoy with your family. You can have a friendly neighbourhood where your family will feel good.

To buy a home, you have to prepare well. Even though the mortgage is usually the cheapest loan in the market. Of course, the ideal way to buy a house is to pay 100% in cash for everything and enjoy life without payments and mortgage loans. However, you can buy the house with a mortgage, if you do it intelligently following certain conditions. Buying a house is the best option because the situation changes when you get older, you have family and children. You know where you want to live, and you want stability. When you consider living a long, happy life and looking far in the future, the purchase of the house seems to be a better option.

Are you interested in buying a house in Hyderabad? Property Adviser with a huge database of properties for sale in Hyderabad helping a lot of buyers to find their dream home. Here you can filter based on your requirements such as budget, facing, type, community, etc., This helps you to select the best flat or house that suits your lifestyle.

By: Shailaja K