Indeed, both the ideas are perfect in terms of financial security while safe dwelling. We generally argue on when and where to buy a house. But that’s not worth discussing. We shall discuss whether to buy a house or to live in a rented house. Both have their own benefits and drawbacks. Where buying a house is a great responsibility, rented house is free from banks and paper formalities. Nevertheless, on the other hand, owned house always give a sense of security, rented house may not able to provide the security if living in same house for many years. So, let’s check out when you should buy a property and when to rent them up –
To Buy A House
A home that is owned is purely and solely yours. No one – means No One – can ask to vacant it till the time you are taking care of all the banks’ norms, paying EMIs in time and not being fraud to the financial institution. You can buy home in case –
You have enough funds
If you have saved up sufficient funds for paying marginal value of the bank loan then you can go for buying a house. Banks, generally, approve 80 to 85 per cent of home loan and 15 to 20 per cent of the marginal cost is to be beard by the buyer. If you have saved the 20 per cent of the capital value of the property, you can easily purchase a house.
You have planned to settle down
In case your roaming days are over or do not have any roaming plan then you can buy a home for yourself to settle down at one location. Or, if you are looking for safety of your family while you are roaming around the cities or countries, buy a home for their safety while you are away.
The property price is downfacing
If you have saved up some good amount for house and you find the price of property dipping down, you shouldn’t wait for further depreciation in coming years. Not always does it happen, but people who generally think of purchasing house after major price revaluation usually have to pay more because of sudden capital appreciation.
To Rent A House
It is always wise for a man to live in the house built by a fool. At least this is what a British proverb says. You have many reasons why you shall stay in a rented house. You can rent a house in case –
You don’t have sufficient fund
Renting a house is wise in case you do not have sufficient fund to cover the marginal cost of the home. It has been observed that the rent to be paid accounts for 2 to 4 per cent of the capital value of the property while borrowing home loan may cost around 10 per cent of the property value. It leaves a gap of around 8 per cent. If this 8 per cent is really a big amount for you then you should go for renting a house.
If you have to roam around the cities
By chance, if you are in a job where you have to travel from place to place, it is always recommended to rent up the houses wherever you go. For buying a house, the locality is a measure concern. Till the time, you are not sure of settling down or of the locality where to settle down, renting a home will be wise.
You have to decide the location
If you have just arrived from a foreign country (in case of an NRI) and you have sufficient fund in your account to fund a house but confused with the locality, you can rent a house till the time you are not sure of the city of your choice. And even if you are planning to relocate from one city to another, you can still rent a house for few days or months to have proper tap on the city.
Owning a house, no doubt, is always a better idea for it provides mental peace and security. Decision is all yours!