Moving into your purchased home
makes a lot more sense than opting for leased accommodation year after year.
Buy or rent in a dilemma that
faces most and with good reason. On one hand, there is the concern that making
a quick purchase decision may result in losing out on a better home down the
line. At the same time, the high cost incurred in leasing a flat can offset the
advantages or waiting. So let’s see why owning a home makes more sense.
Cost factor
The quest for a lavish
residence or a prime location often compels young couples to stay in leased
accommodation for years on end. The large investment and the prospect of taking
a home loan often deters them from buying a house. What they fail to realize is
that the cumulative amount they will end up paying for their leave and license
fees could instead have been diverted towards repaying a home loan. That way,
they could have created a concrete asset. Being a licensee means just paying up
a hefty amount towards the tent every month and you end up with nothing to show
for it after a five or ten-year lease period. Moreover, with lease rentals in
the metropolitan region rising steadily, the cost of not buying a house is
increasing with each passing day.
Tax benefits
Ask any finance consultant or
even your chartered accountant for that matter. They will advise you that it
makes a lot more sense to purchase a house rather than stay in one on rent. The
tax benefits on repaying a home loan ensure that the effective rate of interest
that you actually bear is considerably lower. It is also wiser than being a
tenant, paying rent as well as higher taxes at the same time.
Stability counts
There are several practical
benefits to buying a home as well. Flat purchasers are quick to point out the
biggest benefits of owning a residence, namely stability. Rather than move from
one location to the other like a nomad and be the brunt of jokes about
‘settling down in life’ from friends, relatives and colleagues, a fixed
location can be a godsend. Myriad problem are faced by those residing in
temporary accommodation, from the children’s schools to emotional upheavals at
shifting residence again and again, making new friends, being treated as
outsiders, and so on. It’s tough for kids and their parent to get used to a new
location every eleven months.
Décor damages
When you buy house, you can
also ensure the décor of the apartment is to your liking and personalize it
with pictures, posters and so on. This again is a facility that those residing
in leased accommodation do not enjoy. How long your furniture lasts also
directly depends on whether it is being carted off to a new house every 11
months or not. Above all, there is a sense of security and belonging when you
buy a house. Coming back to a leased flat at the end of a hard day’s work
doesn’t quite have the same attraction.
The downside of frequent shifts
- Each time you shift to a new but temporary accommodation, there is a basic cost involved in terms of two months rental, which goes towards the brokerage.
- Movers and packers do charge a hefty sum these days, even more so during the festive season or vacation period when the greater demand for their services enables them to raise rates overnight.
- The term ‘collapsible furniture’ can take on an entirely new meaning when you keep on moving house every 11 months. If you like certain antique pieces or ancestral furniture, get your own home fast.
