Why Staying on Rent may not be Smart Move?

When you are able to pay and buy your own assets through EMI methods then Why are you required to stay in a rented home? This is the spiced logic justification we have regularly with our friends, bank managers, and discussion with parents. But the actual fact, where you going to pay your rent for your house in a place where you didn’t get benefits back to carry forward, but the house value keeps on increasing, investing in the purchase of a house through EMI methods can be a better way to choose and have the benefits. But if you look around depth this statement also has some blemishes and flaws and the logic stays in it the real estate’s insane value of price in India is also our viewpoint towards buying it.

It was known, the pricing space for the house was increasing constantly over around past 20 years, which compared to more than 40% more than our salaries increment, report given by Institute For Fiscal Studies, and the situation make worse when rents price value reaches nearly 30% of monthly income, in case where in 1997, people with age 25-30 years between who bought their house or property was 58% now as compared to current situation its value is 32%, which is said by Atul Goel, MD, Goel Ganga Group.

Why staying in a rented house is not a smart move, actual reasons are:

1. Purchasing our own house offers emotional and financial benefits to well-being such as making affluence for individuals and getting steady. It can help the buyers of the house and the owners construct wealth as well as the price of property raise over a period of time.
2. Buying a house with a certain amount if required to sell also gives our amount and price value for the land increase only it is never steep, owners of the home can add to their wealth and can also use it to achieve their dream house whereas renting involves just one recurring monthly cost which is rent that is given to another individual but doesn’t add any personal wealth as well.
3. Atul Goel noticed that by buying a house, house owners can grip their rapid growth in net worth in plenty of ways also can include taking loans against their own owned property or house.
4. It can act as a source of income if the owner of the property desires it. For example, they can rent a part of their property and can have some gain like income from the plan, or else if the owner does not want to stay in that particular property, they can have benefited from the things and gain profit by using it as a commercial alternative by providing rental services like homestays and others.
5. For an owner of a house the option of rent can be an excellent source of income in various other ways to get benefited from, the place where the value will increase according through the year too.
6. By renting properties, landlords not only have the right to raise the rent but can also evict tenants by serving them a notice period which as a result creates trouble for tenants to find another rented property in that short period of time.
7. Another trouble which has nowadays been seen is in the case of renovating the living house. The tenants are unable to do so as the rent agreement doesn’t allow those perks but house owners are greatly comfortable renovating their living homes and can design them as per their choice.
8. The financial steady of the person, renting a house also has many disadvantages and wrong factors which harm. When you are a tenant instead of a house owner you miss out on the opportunity of getting tax benefits which affect your credit score and in return, it doesn’t add anything to your wealth creation.

The person added, “we can say that house ownership provides a sense of stability which uplift people to get stable and feel free for them from the fear of rent or get rid of, from a rental house and gives you freedom of creating a design for your dream house moreover anything it helps you generate passive income.” Although, we can conclude that renting a house is not the smartest move.