A house is more than four walls and a roof; it is where the heart is. Owning a home can provide a sense of security or serve as a symbol of accomplishment. However, it is not only an emotional investment but also a financial one. This is why it is critical to weigh all the pros and cons before buying a home. Check out this list of home ownership, Merits and demerits of owning a house to help you decide what is best for you.
Advantages of Owning a Home
Owning a home has several advantages, especially for those who want to establish roots in a specific area. Here are a few examples:
- Investment and Growth in Equity
Investing in real estate is a good idea to give yourself a sense of belonging and permanence. When you know, you’ll be in a city for an extended period of time. Aside from that, home prices frequently rise over time. Owning a home implies amassing wealth over time. Delaying the purchase of a home will necessitate a larger investment (in addition to having paid rent over an extended period).
- Privacy and Control
One of the most obvious benefits of owning a home is complete control. You do not have to deal with a landlord; whether it is minor maintenance or a complete remodel of your entire property, you have complete control. Furthermore, you have complete privacy and are not required to notify your landlord if you have visitors. There will be no more restrictions on pets.
- Tax Benefits
Repaying your home loan principal and interest can result in tax benefits. When you get a home loan, you get income tax breaks under several sections, including Sections 80C, 24, and 80 EEA. These offer a benefit of up to Rs 5 lakh, making them an enticing option.
- Long-Term Stability
Homeowners are four times less likely to relocate in a given year than renters. Residents who stay in the same house and neighbourhood for longer have stronger social bonds, civic involvement, and social capital. Furthermore, for many parents, one of the most appealing aspects of homeownership is the ability to pass down a fully paid-for home to their children.
- Emotional Security
Having your own space is a benefit of owning a home. After a long day, coming home to your own nest provides a sense of security and unrivalled comfort. After all, there is no place like “home” to truly relax and be yourself.
Disadvantages of owning a house
Why isn’t everyone doing it if there are so many benefits to owning a home? People prefer to rent for a variety of reasons. However, as you learn more about these issues, they become less intimidating. Here are a few examples:
- Financial responsibility
A large down payment, at least 20% of the house’s cost, will be required. Furthermore, home loan closing costs can range from 2% to 5% of the purchase price and include various fees, mortgage insurance, a home inspection, and the first-year homeowner’s insurance premium. It could take years to recoup those costs.
- Additional Costs
Another disadvantage of owning a home is that you may have to pay for utilities such as water and garbage collection that the landlord would provide if you rented. Some landlords also provide internet access and cable television. However, as a homeowner, these are now line items in your budget.
Predicting maintenance costs is a different science, but being prepared is always preferable to be caught off guard by a costly emergency repair.
Set aside some money for maintenance. However, it would be best if you allocated a larger portion of your budget to the upkeep of an older home.
You will also be required to pay annual property taxes.
- Less Flexibility
Remember that selling your home can take months or even years, depending on the property market. This can make responding to opportunities such as starting a dream job across the country or relocating closer to home to care for elderly parents more difficult. However, you may be able to lease the house for short-term travel. In any case, expect a more difficult move than if you were leaving a rental.
Conclusion: Owning a House
Home loans make it easier to own a home today. While getting a home loan is no longer difficult, you must be careful not to fall behind on payments. If you make regular mortgage payments, your credit, and CIBIL scores will improve. Of course, your credit score will suffer after you obtain a home loan. That’s because you have a significant debt you have yet to prove you can repay. However, as you make regular on-time payments, your debt will begin to resemble responsible debt. Do not incur any major debts for at least 6 months after receiving your home loan.
Home purchasing is ideal for those looking to establish roots and invest in their future while maintaining privacy and stability, but it is not for everyone. Your job and personal preferences determine whether you should buy a house or rent a place to live. Consider the benefits and drawbacks of owning a home and everything that comes with it before deciding what’s best for you.
Also Read: 8 Simple Village House Designs In India – For Your Second Home
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