If you’re considering whether to rent or own a home in India, it’s important to weigh the benefits and drawbacks of each option. While renting may seem like a more flexible and affordable choice in the short term, owning a home has a number of long-term advantages that are worth considering. One of the most common ways to finance a home purchase in India is through a home loan, which allows you to borrow money from a bank or financial institution to buy a property.
In this blog post, we’ll explore 5 reasons why owning a home in India may be a better choice than renting.
- Investment potential:
Owning a home is a long-term investment that can provide significant returns in the future. Real estate prices in India have historically appreciated over time, which means that your home could increase in value over the years. This can be especially beneficial if you’re planning to sell your home in the future, as you could potentially make a profit on the sale. Additionally, owning a home can provide you with a sense of financial stability and security, as you have a valuable asset that you can use to build wealth over time.
When you own a home, you have complete control over how you decorate and modify it. This means that you can make your home truly your own by painting the walls, installing new fixtures, and making other changes that reflect your personal style and preferences. In contrast, when you’re renting a home, you’re generally limited in terms of what you can change or update, as you need to get permission from your landlord before making any modifications.
- Predictable payments:
When you take out a home loan to purchase a property, your monthly mortgage payments are generally fixed for the duration of the loan. This means that you can plan your budget more easily and have a better idea of how much you’ll need to pay each month. In contrast, rent payments can vary from year to year, which can make it more difficult to plan your finances.
- Tax benefits:
The Income Tax Act of 1961 provides several tax benefits for those who have taken home loans.
- One such benefit is that homeowners can claim a deduction on the interest paid on the home loan under Section 24(b) of the Income Tax Act. The maximum deduction allowed for a self-occupied property is up to Rs. 2 lakhs.
- Homeowners can also claim a deduction on the principal repayment of their home loan under Section 80C of the Income Tax Act, with the maximum deduction allowed being up to Rs. 1.5 lakhs.
- Additionally, under Section 80C, home loan borrowers can claim a deduction on the stamp duty and registration charges paid while buying a property, subject to an overall limit of Rs. 1.5 lakhs.
- Pride of ownership:
Finally, owning a home can give you a sense of pride and accomplishment that comes with having a place that’s truly your own. You can take pride in maintaining and improving your property, and you’ll have the satisfaction of knowing that you’re building equity in a valuable asset. Additionally, owning a home can provide a sense of stability and security that can be hard to find when you’re renting.
In conclusion, while renting a home may be a good short-term solution for some people, owning a home in India through a home loan can provide significant long-term benefits. From investment potential to tax benefits to the pride of ownership, owning a home can be a smart financial decision that pays off over time. If you’re considering buying a home in India, be sure to explore your home loan options and work with a reputable lender like Ruloans to find the best loan for your needs.
Ruloans is one of India’s top credit financing companies. From credit cards, business, and personal loans to mortgages, Ruloans help customers achieve their objectives both for business and individual needs. Check here for more details: https://www.ruloans.com/home-loan.htm