Buying vs Renting a Home in India – Which is Best?

While being a tenant can be cheaper, it isn’t a permanent solution and can be expensive in the long run. Owning your own home can come with a number of benefits. However, it also may have a heavy price tag. So, you can take an affordable Home Loan to purchase your own home.

A Home Loan from a reputed lender can also offer you multiple advantages. For instance, Bajaj Finserv Home Loan offer funding up to Rs.3.5 crore at nominal housing loan interest rates with a 3-EMI holiday and customized insurance schemes. You can also avail the Flexi Hybrid Loan facility to get principal holiday for up to 4 years.

Now that you know how to finance your purchase, look at how owning your own home is better than renting out an apartment.

home-loanYour Monthly Cash Outflow is Significantly Reduced

Without the need to pay rent each month, your monthly cash outflow is significantly reduced. You can consider your Home Loan EMIs as rent instead. Additionally, having your own home means any investment you make in your property adds to its value rather than the value of  someone else’s home.

You do not have to Pledge a Deposit

With the growing value of real estate, a landlord’s requirements for the deposit has also increased along with the demanded rent. Having your own home avoids the need for you to pledge a high amount as deposit. Furthermore, most rental agreements include one month’s notice if the owner expects you to vacate. While this may seem like substantial time, a lot of owners do not return the deposit until after you have left their home. Arranging another lump sum amount to pay a deposit to your new landlord can be financially challenging.

Your Future is Secured

Having your own home not only takes away the worry of having to arrange for rent post retirement, but also helps secure your family’s future. This means you do not need to worry about where you will live or how you will finance the same during your old age.

Your Investment in a Home is Profitable

The price of your home is ever-increasing, and investing in such an asset means gaining much more value over time. Additionally, this asset is passed on to your spouse or children in case of your demise and isn’t lost or exhausted like finances. Furthermore, if you choose to stay with your children post retirement, you can rent out your property to continue to receive regular income. This helps you stay independent.

So, consider taking a Home Loan today to purchase your own home. This helps you:

> Make the most of the current real estate prices and the PMAY scheme

> Divide your heavy purchase into equated monthly instalments

> Avail tax benefits on your payments towards your housing loan

Remember to use the Housing Loan EMI calculator to forecast your expenses and check the documents required for Home Loan before applying for the same.

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