Owning a home is an essential milestone in an Indians life. It is a major step toward settling down as scripted by social norms and traditions. It reinforces a sense of security and stability, especially for families. But as time changes, the circumstances and life trends tend to change with them. For instance, a few decades ago, owning a home was not as expensive as it is today. But with the boom in real estate prices owning a home has become a major financial obligation. For most people, it is an investment of all their lifes earnings and savings. And for most, it is not possible to own a property and renting becomes a more viable option.

Home buying vs renting is a debatable topic. One can consider buying or renting a home depending on their personal circumstances. Hence, it becomes a personal choice depending on individual attitudes and state of mind. Let us look at the advantages of both.

Advantage of Buying

Psychological Benefits

In keeping with social conditioning and norms, owning a home allows one to feel stable and in control. One can feel proud of owning property and establishing status in society. The owner feels secure in having the proverbial roof over the head for their lifetime and provides shelter for their family.

Financial Benefit

Buying property offers long-term wealth growth as the value of the property appreciates over time. As the mortgages are paid off one can build valuable assets in the form of equity in the property.

Advantages of Renting

Psychological Benefits

Renting allows one to be burden free. One can be mobile and carries lesser responsibilities if they are renting a house. For those who must relocate or keep travelling, renting is a stress-free and easy alternative. One doesnt have to maintain the property or take care of expenses arising from repairs.

Financial Benefits

Renting is comparatively a lower financial investment option as one doesnt have to invest a significant amount of personal wealth. The expenses are lesser as one is free from maintenance and property taxes. Further, the money saved can be used to invest, save, or for personal fulfilment goals.

One can consider their financial position, long-term personal and professional goals, prevailing real estate market conditions, and mobility while making this important decision. By doing a comparative financial analysis one can also understand if investing in a property is worth it.