BUYING AND RENTING HOUSE HAVE THERE OWN BENEFITS. Many people have a dream of owning their own house. Not everything should be put in terms of profit or loss. owning a house is an emotion to us. it is not about just smart investments.
There is always pros and cons on both buying and renting a house.
Buying or Renting a House
WHY YOU SHOULD NOT BUY A HOUSE?
They are three expenses while buying a house . even if you are looing for loan the maximum capital is of 80 percent and you need to arange 20 percent cash for your self of the the total amount.
EMIs average rates are around 6.5 % to 7% . the mistake we make with emis is that we do not think about the principle we need to return along with interest.
Maintaince cost is roungly high according to your status of living. A report says there is 1 percent + maintenance charge of the total cost of house. in different except of painting, cementing, repairing extra.
But in practical life we overlooked these things because owning a house is a sense of pride. if you got a job and failed to own a house. society will make you feel apart.
But the rich people do not earn to show off. they earn smartly to enlighten themselves. show they take wise decision.
Even Elon musk do not have an house. he leave in industry accommodations. just to save tax. even warren buffet is living in his childhood house. he do not bother of status. that what educated people do.
if you have 1 crore home loan then you might we paying 9 lakh for 20 years and all emis and expenses vs if you are in rental home in will pay 20k to 25k per month rather than 75k on buying.
so better we put our 50k per month in mutual funds as this will give higher return after 20 years that might allow you to buy the 1 crore home at an instance even if there is price hike without any home loan.
You can also think rent an increase in leading years but this is not possible as the market always remains balanced . Huge hike in rent will never came.
LETS FIGURE OUT WHY YOU SHOULD BUY A HOUSE?
what if rent gets doubled rent keeps on increasing while the emis is fixed. After 20 years rent will be may be 3 times but EMIs will be what it was 20 years back. emi brings you to disciplined asset owning capacity but saving something from rents might be invested or consumed on something else.
what if home loans end in 10 to 20 years but rents need to payed lifetime. so its like a retirement plan as , when we will be out of income loans will be cleared but rents are to be paid irrespective of our income is there or not.
so if we look it is better to find scopes look for investments and mutual funds to see how much we can collect overall before taking a loan. it is appreciate to take a small part of total money needed as loan but no major part. so if my property cost is 50 lakh. then i should take loan of 10 – 20 lakh and try to collect rest from own.
HERE ARE THE LIST YOU CAN TAKE HOME LOANS FROM TO MAKE YOUR DREAM TRUE.
also read = Top things to consider before buying health insurance