In the year 2020, a lot of things changed people’s thinking and owning a home was one of them. For many of us, investing in a house is like ticking out a dream from our bucket list. But there are always some pros and cons of owning a home that comes along with homeownership!
To be honest, there is no definite answer to the question; is buying a home better than renting? The answer depends upon many factors like budget, locations, income and property prices. One cannot just go out there and buy a property.
In this article, we will discuss the pros and cons of owning a home and also about the little things that will help you decide.
And let’s dive right in
Advantages of Buying a Home
The sense of achievement that comes along with buying a home is truly incomparable. Undoubtedly, there are numerous benefits of owning property out of which we will discuss a few here.
Make an Indelible Investment
When you invest in a property, it is yours for all the upcoming years unless you want to resell it. Moreover, even if the markets crash or depreciates, the land on which your property stands will always appreciate over time.
Thus, there is no risk factor involved in real estate investment, and this long term investment is the safest option. Even if you are low on money and have bad credit, there are many effective ways to invest in real estate!
To gain some significant returns from your investment, you can even put your property up for rent and enjoy substantial benefits in the long run.
Enjoy the Sense of Freedom
One such perk that renters do not enjoy is privacy. The freedom of living in your home the way you like tops the list of all the pros of buying a home. Enjoy the privacy without hindrances from neighbours and restrictions from the landlords.
Furthermore, if you are the owner of the house, you can change it, customize it and design it according to your liking. Add a room, include a terrace garden or extend the balcony, you can alter the architecture of your house as and when needed.
Save More on Taxes
As the Interest paid on a mortgage is tax-deductible, you can enjoy some major tax benefits which will prove to be beneficial over time. Also, you may be able to write off the interest you pay and not have to pay taxes on that portion of your income.
Moreover, a subsidy of 2.65 lakhs is given by the government on home loans which will save you a huge amount of money in a few upcoming years.
As per the needs of many home buyers, Mahima group has taken an initiative of turning every tenant to a landlord and is giving attractive offers on buying a property. There are many other tax benefits given to the homeowners by the government, Make sure to check if you fit in any of the slabs as it will take off a lot of burden from your head.
Disadvantages of Buying a Home
Even though there are many emotional and financial benefits when you buy a home, there are also some drawbacks that come with it. Before investing in a property, here is what you should keep in mind.
As appealing the idea of owning a home sounds, it is also a financially draining process. While buying a home, there can be a lot of financial turmoil, and saving money for other causes goes for a toss. You will have to incur costs of property taxes, mortgage insurance, home inspection, first-year homeowner’s insurance premium, title search, title insurance and many more hidden costs that tag along with homeownership. If you do not have a well-planned structure of your savings, it can take you years to recover these costs.
If you are a young professional looking for better job opportunities and are willing to move to another city, then buying a home will not be a wise decision. Owning a home will bind you to the place your home is at.
It might sound overrated, but people tend to develop a feeling of attachment with their home, and this restricts them from moving or selling it. This also proves to be a hindrance in growth and acceptance of better work offers.
When you are a homeowner, you are solely responsible for the property, and this is one of the major disadvantages. If the plumbing breaks down, or the air conditioner gives up, you will be the only one to call a handyman and write out checks for payments.
In addition to it, if you need to keep the property as good as new for the next 7-10 years, then you will also have to keep a check on little fixtures, paints and maintenance of the property.
Also, if you are thinking of putting it up as a rental property, you might have to keep renovating from time to time.
There are many factors affecting your decision, and many pros and cons of owning a home. It is essential to keep in mind all the possible scenarios and outcomes before you jump right in to buy a property. Consider factors like investment, flexibility, cost and tax benefits prior to any property related decision.
But the good news is that Mahima Group can provide solutions to all your property related queries and attractive offers to ease off the burdens of EMI and loans. We even offer assured rentals for your property so that you can gain maximum ROI from your investment.