10 reasons why renting a home in India might not be a wise choice?
India’s real estate market has expanded significantly over the years, with several new projects and developments popping up in different locations. Although renting a home could seem like a practical choice for many, there are some reasons why it might not be a wise choice in the long run. This essay will go over 10 reasons why renting a home in India might not be a wise choice.
No asset creation: Renting a home is effectively paying the mortgage of the owner. The property is not yours, and you have spent money on it without receiving any return in the form of an asset. In contrast, investing in real estate may assist develop a valuable asset that will eventually increase in value.
No control over the property: When renting a property, you have little power over it. Without the landlord’s consent, you are not allowed to make any substantial alterations or improvements to the property. If you have certain needs or preferences for your living environment, this may be inconvenient.
Lack of stability: If you rent your home, you may have to move around a lot since you don’t have a set address. This might be difficult, particularly if you have kids or switch employment regularly.
No tax advantages: Indian homeowners are entitled to several tax advantages, including deductions for the interest and principal payments made on a house loan. On the other hand, renters are not eligible for these tax advantages.
No long-term financial advantages: If you continue to rent, you are effectively paying the mortgage of someone else. The money you spend on rent has no long-term financial advantages or returns.
You do not influence the rent you pay if you continue to live in a rental. Rent increases by the landlord are always possible and might put a substantial strain on your budget.
Lack of tenure security: While renting a property, you have no tenure security. The landlord has the right to ask you to leave the property at any moment, which can be a hassle, especially if you travel around a lot.
No equity development: Every time you make a mortgage payment after purchasing a house, you are accumulating equity. This equity can be utilized to fund additional investments or to apply for loans. Renting prevents you from building up any equity.
No flexibility: If you rent a property, your ability to alter or improve it is severely constrained. If you have certain needs or preferences for your living environment, this may be inconvenient.
No sense of responsibility: When you rent a property, you have neither a sense of ownership nor a sense of obligation to the asset. This may result in a lack of enthusiasm to maintain or upgrade the property, which might result in problems like inadequate maintenance or upkeep.
In conclusion, continuing to rent a home could seem like a practical choice in the short run, but it might not be a wise one in the long run. Long-term financial advantages of property investment might include asset development, tax advantages, and equity growth. A sense of control and ownership over the living environment is another benefit of property ownership, which promotes greater care and maintenance. Although purchasing real estate in India may entail a considerable financial investment, the long-term advantages, and returns can be substantial.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.