Should one buy a house or rent it? The answer to the question is: The better alternative is always to buy a house. Many argue that it is applicable to only those who have the financial muscle to buy property and those who can afford payment of EMIs. The wiser option would always be to buy a house, because the value of the property appreciates with time. The rent that a tenant pays to the landlord would not benefit him in acquiring property. Analysing the issue deeper, there are some defects in the purchase option too.
The property prices have escalated manifold during the past 20 years compared to the salaries of the working class. Currently, 34 per cent of those who are in the age group of 25-30 years prefer to acquire properties as against 55% of the same age group during 1997. Moreover, the expenses to buy property cost nearly 25% of the monthly income of an employee.
Buying property will help people acquire assets, benefiting financially the owner. There are emotional issues too in the acquisition of the property. Moreover, the value of the house will get appreciated year after year.
Buying properties and selling them, the owners would be able to improve their wealth. Living in rented houses would mean they would have to pay some amount towards rent as it would not be beneficial to the tenant.
The rented house is not going to be the own property of the tenant. In other words, payment of rent constitutes monthly expenses whereas buying property is investing in fixed assets. So buying property would be a wise decision.
The house owners can use its net worth in more ways than one.
They can convert their homes into an income sources by letting out a portion of the house. They can run home stay facilities from their properties and rent it out for other purposes and thereby they would be able to earn a decent income.
The rental income will also increase over a period of item. When the rental agreement is renewed, there will be scope for increasing the rent.
In rented properties, the owners would enjoy the right to increase the rent and can expel the tenants by giving them advance notice. It is not easy for the tenants to find another house in short notice.
Another problem with rented property would be the tenants would not be able to change its design according to their tastes. In contrast, the own house designs can be changed to the owner’s specifications.
Renting of the property has many disadvantages with regard to providing economic stability. The tenant’s credit score and subsequent tax benefits would not benefit the tenants. The rented house would not have value-addition to the wealth.
From the perspective of the emotional and economic benefits, buying a house rather than living in rented house is beneficial to people in more ways than one.