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Is It Good To Buy Or Rent A Home ?

Rent Vs Buy

It depends on the market situation. If the market is appreciating it makes more sense to buy. You are grabbing the yearly growth of the home when you buy. In Bangalore prices have appreciated on an average of 10% a year since 2005, also it is more like having a savings account. Buying a house also gives the option to build an asset, which will increase your total net worth.

Your dream home can be customized the way you want, owning a home also gives you a permanent place where your family can live and grow. Another advantage of owning a home is tax benefits, the housing loan interest is eligible for tax benefits as per section 24b. There are few things like maintenance costs and other expenses with the home, but in long term, you will be financially more fortunate.


Renters, must pick up and leave after your lease term. You’re on a month to month deal. Some advantages of renting include You have more flexibility and the freedom to move from one place to another and also renting can be cheaper than buying. However, a disadvantage is that renters are at the mercy of their landlord and are usually restricted by their leases.

Historical data proves rental costs will continue to rise over the years due to inflation and rising property prices. Depending on the place of residence, loan repayments may initially be higher than rental costs, but over a period of time the loan interest accrued decreases with the repayment of the principal.

It also includes the lost opportunity costs, i. e. the return that you could have earned by investing your money by availing loan (EMI) and gradually creating an asset instead of spending it on rent.

If you’re not sure how long you are going to live in an area, you might want to rent. Because if you buy a house and plan to sell it a year later, just the closing charges could burn up all your appreciation. If you know you are going to live in an area for a while, in an appreciating market, buying is undoubtedly the right thing to do. Renting is typically a better option only if your rent is very low or if you plan on moving often.

When deciding whether to rent vs buy, there are a lot of factors to take into consideration, and you have to make the decision that’s right for you and your family. In most cases, it’s better to buy a home than to rent