• Being a property owner is possibly one of the greatest dreams for any Indian. Besides the pride associated with owning a home, the idea of having your own property is tied to creating an asset and a feeling of safety. Although there are numerous advantages linked to homeownership, the trends have shifted in recent years.
• Historically, individuals have been motivated to own a house due to the longstanding belief that homeownership represents wealth and enhances your social standing. However, the cost-effectiveness and flexibility of residing in a rental unit have influenced many to opt for living in a rented space. The city where you intend to reside, your lifestyle choices, which homeowner’s insurance policy to select for your residence, your personal tastes, etc. , are crucial factors to consider when making this choice.
• In this article, we explore whether purchasing a home or renting one is more sensible. Below is a compilation of advantages that will aid you in making a well-informed choice.

Advantages of Homeownership

● Autonomy and authority –
Owning a residence spares you from the troubles of interacting with a landlord. Regarding maintenance, electricity, and water problems, you do not rely on the landlord for repairs. You have control over the modifications you want to implement, from minor repairs to complete renovations, without living under the constant observation of a landlord.
● Tax advantages –
A significant benefit of purchasing a property is the tax deductions you qualify for when obtaining a mortgage. According to the Income Tax Act of 1961, the repayment of a home loan is eligible for tax deductions.
● A personal asset –
Creating an asset is one of the main reasons that drives many individuals to purchase their own home. With each EMI you remit to the bank, your equity in the property increases. Over time, the value of real estate appreciates, contributing to your wealth as well.
● Feeling of safety –
Owning your own home provides a sense of safety and comfort for you and your family. A home comprises the memories shared with loved ones and instills a feeling of belonging.
● Indicator of achievement –
Purchasing a home is linked to achievement and prosperity. A house is regarded as a status symbol and a measure of wealth.
Advantages of Renting a Unit
● Economical –
Repair and maintenance expenses are frequently underestimated, yet they can accumulate significantly and lead to financial troubles when you own a home. Utility costs are generally included when renting an apartment, allowing you to save thousands each month. Conversely, a homeowner must cover these costs out of their own funds.
● Versatility –
If you have recently begun your career, you may not have a clear idea of which city you would like to reside in and for how long. Renting an apartment provides you with the flexibility to move anywhere based on shifts in your professional or personal life.
● Less expensive

• While the amount paid as an EMI premium is frequently similar to the rent of an apartment, the upfront costs required for home ownership are significantly higher compared to the deposit required for renting an apartment. The down payment when purchasing a house can sometimes deplete your savings account, cause financial strain, and affect your monthly budget and way of life. In contrast, when you rent an apartment, you do not have to be concerned about draining your savings, nor do you have to lessen your lifestyle.
  ● Better location-
  Real estate prices in the city’s prime areas are typically beyond the financial means of most individuals. Renting properties in prime city locations is considerably more practical than purchasing a home in the upscale areas of the city.
  
  Conclusion
  The choice between living in a rented apartment or purchasing a new house is a challenging decision to make. It ultimately comes down to specific factors that must be considered when making the choice. However, if you can afford to provide more than half of the home’s value as a down payment and intend to remain in the same city for several years, buying a home could be a beneficial choice for you. If your job necessitates constant relocation and taking out a loan means sacrificing your lifestyle, renting is likely the best option for you. Regardless of your choice, safeguard your home from potential damages by obtaining a home insurance policy.
  
  Disclaimer:
  The above information is solely for illustrative purposes. For further information, please consult the policy wordings and prospectus prior to concluding the sale.