If you are living on rent in metro cities like Gurugram or Delhi NCR, then you must be paying a heavy amount of money in rent, According to a report from Trulia, buying is now 33.1 percent cheaper than renting with a traditional 30-year fixed rate mortgage in the largest metro areas.
Nowadays when all of us are very busy with our professional life, we didn’t have so much of time to look out a home every time when we have some difficulties related to our rented home; it is a very hectic job to change a home after once you settle down a place.
For many people, owning a home makes more sense financially and from a lifestyle perspective than renting a home, so it is a time for you to get out of the rent race and buy a home of your own!
Although buying a home is not an easy thing for every person or, in most situations, paying rent is way more expensive than buying. In essence, you are paying your landlord’s mortgage and building his equity and credit. But once one can handle all these things then you will be able to enjoy your own home. If you’re considering getting out of the leasing game and into homeownership, here are some top reasons to buy your own house, rather than pay your landlord’s mortgage payment by renting!
An asset for the family – If you owning a home for your family then after you, your home would be with your family so by owning a home you are investing in you and your family’s future. You are leaving an asset for your family.
Freedom –When you live in a rented property then you have to follow some rules and regulation of the landlord, if you do not follow the rules then you may be kicked out of their property but when you have your own home then you have all the freedom. Means you can do anything which you would like to have in your home like – you can paint your kid’s room any color you want, you can change your floors from carpet to wood, and you can put a new chandelier in the dining room without asking a landlord for permission. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange.
Force Savings- Owning a home not only is cheaper than renting, but it also forces you to save money at the same time. Your monthly payments are going towards equity that you can tap into for retirement, college expenses, etc. whereas rent just flies out the window.
Steady payments that won’t go up. – When you are paying the monthly EMIs of your home, then it is unlike the rent where the landlord can increase prices on a whim, with a fixed mortgage payment, you know exactly what to expect each month, and each year.
Privacy – For every one privacy is the first and the most important things their life, but when you are living on rented home then your privacy will be dependent, there’s a chance you share walls, ceilings or floors with noisy neighbors. Or maybe you want to be noisy but have to keep the volume down so as not to disturb your neighbors. Either way, home ownership is a preferable option if you want to turn up your music, enjoy some quiet time or if you value your living space as a private sanctuary.
Cost Control – Homeownership is more than just a financial transaction; it’s an act of putting down roots and establishing a lifestyle in a community you feel connected to. With renting, you have no control over whether the cost of rent goes up, pricing you out of your residence, or whether the property owner sells your apartment or house. With home ownership, you’re in the driver’s seat. You can establish a budget to account for your mortgage payment and can feel comfortable knowing that your home will remain yours.
Cost Savings – Being a homeowner often means a lower monthly payment. There are a variety of reasons for mortgage payments being lower than rent, but a major factor is that rental property owners typically have to inflate their own monthly costs in order to turn a profit. With homeownership, you’re not paying a premium to rent on top of a bank loan— you’re the owner of the base level mortgage, which means lower overall monthly costs.
Appreciation Benefits – Owning a home is a savings many people can understand better than buying shares because they get the tangible daily lifestyle benefit of living in the home. But the financial benefits are also significant and can be more substantial than stock investing. As a home appreciates, it accrues faster than a stock might because you get the appreciation on the entire home’s value, not just the gain your down payment cash invested.
Now we can also understand the advantage of having a home through a case study or by numbers:
When you are living in a Rental Home
|Rent per month||25,000 INR|
|Rent appreciation PA||5%|
|Total Rent Amount paid after 20 years||1 Crores|
|Asset Value after 20 years||0|
When you are living in Your Own Home
|Loan amount||40 Lakhs|
|Tenure of the loan||20 Years|
|EMI during the tenure||36,000|
|Total amount paid after 20 years||86 Lakhs|
|Asset Value after 20 Years at 10% appreciation Per Annum||2.69 Crores|
So the picture is quite easy to understand when you are living in your own home with monthly EMIs, in the end, you will have 2.69 Crores in your hand after 20 years.
Conclusion – If you can understand the scenario of renting and homeownership, then you can easily make your life better by owning your home instead of vesting your hard earned money on rent. With this positive thought, you can invest within the latest project of Orris Infrastructure i.e. Aster Court Premier in 3BHK Flats or 4 BHK Flats in Sector 85 Gurugram.
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