Home is one of the most basic requirements for everyone, and owning one is a dream. Home is more than just a four-walled structure with a roof. It also has an emotional component to it. It may be about a feeling of security, coziness, and achievement for some, while it may be about independence and social status for others. The financial aspect is also significant, as owning a home is frequently the largest financial transaction in an ordinary Indian’s life.
Purchasing a home is not a cheap endeavor. In addition to recurring property taxes, insurance payments, and maintenance can be costly. But, putting these concerns aside, there could be significant advantages. Consider that your house may one day be worth more than you paid for it, and you’ll be able to sell it for a profit. If you want to go that route, you could also have the potential for future passive income. Paying off your mortgage can also set you up for a comfortable retirement.
Here are some of the reasons why buying a home is beneficial to rent one.
- Owning a home is a better long-term investment:
Renting a home entails paying your landlord and then having nothing to show for it the following month. Homeownership is a great investment because it forces you to save. When you buy a house with a 30-year mortgage and make monthly payments, you will eventually be able to sell it. However, if you rent a property for 30 years, you will never receive any of your monthly rent payments back.
- No Uncertainty:
There is no fear and anxiety associated with the possibility of the landlord prematurely terminating the lease agreement. Furthermore, there is no need to renew the lease agreement every year and re-negotiate the rent.
- Tax Deductions:
Being a homeowner does not have to be a long-term goal. Enjoy short-term savings through annual tax write-offs and mortgage interest payment deductions, as well as other deductions based on individual circumstances. These deductions can often amount to significant savings, and renters are not eligible for them.
- Gain equity as property values continue to rise:
Home values have increased and are expected to rise further, making homeownership a profitable long-term investment. Home prices have risen 13.2% in the last year alone. What is the significance of this? Because rising property values imply that the money you spend on your home will provide significant long-term returns. And, every time you make a mortgage payment, a portion of that payment is applied to your loan, increasing your equity in the home.
Purchasing a home is not as difficult as it appears. Simply plan ahead of time and go for it. Vridhi Finserv Home Finance Limited is here to transform housing finance and assist our customers in achieving their dream of owning a home with our home purchasing loans, home construction loans and much more.
Begin the process of becoming the proud owner of your dream home with Vridhi