Should you buy a house or live on rent?:What is more beneficial? Learn from experts advantages disadvantages of both

Everyone has a dream of having their own house. We have an emotional connection with our home. However, with continuously rising costs, the biggest question is whether buying a house is right or renting is better. If you want to buy a house, you can become a homeowner after paying down payment and EMIs. You can live there peacefully. You can live there according to your own ways. On the other hand, renting also seems easier because it doesn’t require a large lump sum amount and it’s also easier to change locations when needed. In such a situation, it becomes difficult to make the right choice between these two options, because it involves everything including our earnings, savings, lifestyle, family needs and future planning. Therefore, lets see whether buying a house is right or renting. Lets also ponder on following points: Question – Is buying a house wise or a wrong decision in era of rising inflation? Answer – In today’s market, buying a house is not an easy task due to rising inflation and high real estate prices. The burden of lump sum down payment and long-term EMI pressure can disrupt anyone’s budget. However, the other side is that if our income is stable and we plan to stay in the same city for a long time, buying a house can be a wise deal. For those whose income is at an initial level or who get frequently transferred in their job, this can become a burden. Question- Is buying a house better than renting for tax benefits? Answer- There is no direct tax exemption on buying a house. However, you get tax benefits on both interest and principal components of home loan EMI. This provides tax savings for a long period. On the other hand, while living on rent, you can claim HRA (House Rent Allowance). This provides limited tax benefits. Therefore, if you want tax benefits, buying a house could be a better option. Question- Are there any disadvantages of buying a house? Answer- There is no direct loss in buying a house. It depends on your circumstances – when and where you are buying the house. Find out in the graphic below what types of losses can occur. Question- What are the benefits of living on rent? Answer- Living on rent gives you a lot of flexibility in terms of location and career. Question- Is buying a house just a place to live or can it be a long-term investment too? Answer- Buying a house is not just about having a place to live. It can also be a solid long-term investment. Question- Is it right to buy a house at a young age or should one live on rent first? Answer- The biggest advantage of buying a house at a young age is that EMI will start early and you will finish it while still young. Additionally, your property will be ready sooner, but EMI can become a burden if income is not stable in the early career. In such cases, it’s better to live on rent for a few years and buy a house later after saving money. Question- What is the right option if income is not fixed? Answer- If your income is not fixed, savings are low and you think it’s better to keep money in your account for necessities, then living on rent is better. If income is stable and you have good savings, then buying a house is right. There won’t be any difficulty in paying EMI. Additionally, you will build a strong asset. Question- Should the decision to buy a house be based on whether it’s a small or big city? Answer- House prices in metro cities are very high. Therefore, living on rent there is a more practical option. In small cities, the difference between EMI and rent is not very large and property value also increases rapidly. Therefore, buying a house in small cities can be a smarter decision. Question- Which option proves more economical between EMI and rent? Answer- Generally in big cities, EMI is much higher than rent. In such cases, if EMI is consuming a large portion of your income, it can disrupt your budget. However, it’s important to note that rent is just an expense, while EMI is an investment. After paying it off, you become the owner of the property. Therefore, paying home EMI in small or medium cities is a better option. Question- How important is it to have an emergency fund before buying a house? Answer- Having an emergency fund before buying a house is essential.