Renting vs Owning a Home

Tue, 09/13/2022 - 08:01

Author: JLL

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Every Indian dream of owning a home someday, but the skyrocketing prices of Indian real estate have made people think that renting is a better option than buying a home. But have you ever wondered why people still dream of owning a home? What are the pros and cons of the same? Let’s read and understand the crux of renting a home vs. owning a home.

Home Ownership

Owning a home gives a sense of pride and belonging, not only because you have decided to stay there, but because you own it. The freedom to call it "My Home" is priceless. In addition, real estate is a tangible asset that continues to appreciate, resulting in a high return on investment. However, this is not the case with rented homes. The ownership of a rented home lies with its landlord. You do not get the freedom and flexibility to use the property as per your requirements and you ought to agree to and follow all the conditions imposed on you by your landlord. In addition, the rental amount paid to the landlord yields no benefit, whereas the EMIs paid to own a home increase your share of the ownership.

Maintenance & Security

Well, this is not your monthly maintenance. We are discussing here your home’s actual maintenance, which is required from time to time. In a rented apartment, the responsibility of maintaining a home lies with the landlord. They will be the ones to do the interiors and repair all the wear and tear on the property. In most cases, the repair of these broken things takes longer than usual, which may cause tenants to suffer. In a rented property, tenants can also be asked to leave the house with or without a notice period. Therefore, owning a home is always a good option, which gives you the flexibility to make changes according to your requirements with a sense of security and protection from eviction.

Tax Benefits

While renting a home is cost-effective, it provides a maximum deduction of up to Rs. 60,000 yearly and Rs. 5,000 monthly. On the contrary, you can avail of multiple tax benefits on your home loan. Yes, you read it right! You can avail of tax benefits under Section 80C, Section 24, and Section 80. Under Section 80C, you can avail tax deduction up to Rs. 1,50,000/-on the principal amount, whereas, under Section 24, you can claim 2 lakhs on the interest amount only if your property construction was completed within 5 years. In case of delay, you can still claim Rs. 30,000 on the interest paid. Further, under section 80, first-time homebuyers can claim Rs. 50,000 on the interest paid in the financial year on fulfilling the condition of availing a loan up to Rs. 35 lakhs and buying a property that must be valued at Rs. 50 lakhs.

Need more information? Reach out to our experts who will help you strategise your road to owning a dream home!

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