Home Buying Process

A question which comes in every potential first time home buyers mind that Should I buy a property for self or Should I stay in rental accommodation? There are some unique advantage & disadvantage behind both these property decisions. One must take factors into mind before making any kind of decision because it makes huge impact on your financial commitment. 

Reasons For Renting
Renting is always very lucrative option for those who wants to live in posh area without investing much or for such kind of people who wants to get experience of different place & don’t want to stay at same place for a long. There are certain points which makes renting accommodation is better than own property. Flexibility
Renting a property gives a lot of flexibility which owning a property cannot. If someone having frequently transferrable job then rental property is always better option than owning property. Same with if a person who wants to move one city to another city. It is equaled applicable if you don’t have stable kind of job. Buying a property may hold you long term liability. In flexibility parameter renting accommodation is better than owning property.

Low rental rates
Renting rates are low in India. Typically it is only 3-4% of the value of the property. One can save huge amount of money if omebody investing money wisely with good option rather than buying. For example: A person rented a property worth of 1 Crore paying 30,000/ monthly means 3.6 lakh annual. If he invested same amount in FD in bank, which considered most safer investment the easily he will get 7-8% of interest means he will get 7-8 Lakh every year.
In other hand if you want to buy property through the bank loan then at least 20% you to pay self & maximum 80% can get from bank. But it will be based on your credit record. If it is not good then maybe you will get lesser from bank. After that some other expenses which you have to bear like service tax, registration fee, stamp duty etc. Again you need to deal with the EMI as well. 

No maintenance costs
Home maintenance is an expensive affair and can eat up your savings. If you rent a property then you don’t have to worry much about maintaining it as the responsibility falls on the landlord to fix any problems that may arise

Reason For Buying

Property is considered one of best investment along with investing gold & mutual fund. It gives not only very good returns but also provide a better social status too. Owning a property is one of the biggest investments for a person in his/her life. Properties tend to witness capital appreciation over the time & also provide rental income to make it juicy investment option.

Having own home gives certain stability & peace. All the time you don’t have to deal with pesky landlords and their whims & restrictions. When you know that you are going to move down your roots in a particular city, getting own home makes more sense. If we look at nature too even birds make their own nest where they come back to take rest feel more safe & secure. Tax deductions
Tax benefit is another advantage to buy own home. If you have taken a home loan on a property you are going to live in, the principal amount repaid up to 1.5 lakh qualifies for deduction under Section 80C; while up to 2 lakhs of interest paid is tax-deductible under Section 24.

Control over property
You have full of control over the property you own, which is not possible with a rented accommodation. If you want to carry out even the smallest modification to your rented accommodation you will have to get the go ahead from the landlord. That is not the case when you own a home.