Rent House: House rents have increased tremendously these days. In such situations, huge loans are taken for owning a house. Even if the interest rates are high, there is no going back. Is own house better for common people or rented house? What is the benefit? Let’s take a look.
Rent House: Houses are the most important aspect of every person’s life. However, everyone has different thoughts on ownership. While some live by paying rent, others buy their own house depending on their financial status. But in the long term financially and in terms of comfort, the comfort zone is taken care of. But, is a rental house beta these days? Or better own house? is something that confuses the average human being. But let us now consider which of the two is the better.
There is no freedom if you are in a rented house. Homeowner restrictions and adjustments may be required. In some cases, if the owner of the house tells you to vacate, you have to leave the place without a second thought. Due to this, problems arise in matters such as increasing the distance of children’s school and office. Often rising rents seem to be the main problem. No changes can be made at home. Like it or not, time has to pass.
Some people think that renting a house is much better than owning one. Many people say that owning a home is a financial burden. Some people think that they can deposit money in the form of investments and get huge returns if they stay in a rental house. Now let’s look at an example of what is better financially in terms of renting a house vs. owning a house. Let’s say you are paying rent of 20 thousand at present. Let’s assume the rental increment is 5 percent. If you look at this calculation, you will have to pay about 1 crore 26 lakhs for 20 years. It should be noted that this is more than what a medium range house would buy now.
Now let’s see how much you will have to pay in 20 years if you buy your own house. Let’s say we have allocated 60 lakh rupees and bought a house. In this, a down payment of 12 to 15 lakhs will have to be paid. If the remaining amount is taken from a bank loan and the interest rate is 7 percent, the principal and interest for 20 years will be around 98,50,000. That is, it is equal to the rent mentioned above. But own house so by that day we will have a house in our hands. This house has increased in value. This will make us financially stable. This is not possible if the same rental house continues to pay rent. Therefore, calculations show that it is better for people who have a permanent business or job in a place to own a house than a rented house. This analysis is only on rented house Vs own house. If we look at other investment avenues, the calculations will be different.
