Why is buying a house better than renting

by Radha Lakshmi Blogger

Owning a house is still like a dream to many people. Making such huge financial decisions isn’t easy. You might have many questions in your head before buying a house. There will even come a point where you might have second thoughts about the purchase.

Before starting the process of buying a house, you need to understand that the purchase is going to affect your finances as well as lifestyle. As buying a home is a major responsibility as well as a major financial move, therefore it is wise to carefully consider all pros and cons.

Advantages of Owning a Home

1. You will have greater privacy, as it will be your own personal space.

2. The value of houses is anyway increasing in the future, hence it is always a good investment.

3. Buying a home is ideally based on a fixed-rate mortgage and your costs are predictable as well as stable than renting.

4. You will find affordable options such as purchasing a lower cost manufactured home.

On the other hand, if you rent a house, you will deal with the following problems:

1. Instability

If you have rented an apartment on a temporary basis and there is any sort of infraction, your landlord can ask you to vacate the premises with a 30-day notice. With inflation, the cost of living also goes up along with the rent of your home.

2. No Equity

You need to pay your rent every month. Due to this, your money is not getting invested and you are left with no long-term security neither are you saving. On the other hand, if you own a home, it will be called an equitable long-term investment. If you decide to renovate your house, its value increases even more. Whereas, in a rented house if you go to renovate or make any changes in the existing property, the value of the landlord’s property increases. If the location of your house is good or there are new shops anywhere near your apartment, property value automatically increases along with the rent price.

3. No Financial Incentives

You will have financial incentives if you give up renting. You will have a stable residency as well as a chance to build equity. You can receive savings and tax credits for becoming a homeowner.

Keeping all the above points in mind, it is only a wise decision to buy a house rather than renting it. The process of buying a house has simplified over the years. Due to changed lifestyle, many individuals are willing to purchase a property. The eligibility of any applicant is dependent on monthly income, fixed monthly obligation, current age, retirement age, etc.

Today, you can easily apply for home loans online to avail offers like zero processing fees. Also, banks clearly mention their eligibility criteria, documents required for a home loan, procedure, interest rates, and other information on their official site. The applicants can also use the home loan eligibility calculators to know about their eligibility for home loan in just few minutes.