‘Roti, Kapda aur Makaan’ has always been the slogan of mankind. These had been important from ages though the styles have changed. The basic necessities remained the same.

TABLE OF CONTENT

1.Buying Or Renting

2.Buying a House is Essential

3.Rented House is Compulsion

4.Individual Choice

1. Buying Or Renting :

Now that India is on the path of ‘Atmanirbharta’ where we are looking for stability in times of crisis, buying a home is much more striking than renting. The drastic pandemic has taught many lessons to everyone. One of the most prominent one is the importance of a house. During the pandemic it was not only a shelter but it also was a school for kids and an office for the working members of the house. Be it a rented one or an own, a house is the basic necessity of life and after the pandemic; its importance has grown four folds. The question is – should the house be own or a rented one? This goes for a debate as people have not been able to decide on one but again the pandemic has given a silent indication – i.e. own house will be a better one as it will be hassle free from payment of rent which gets on nerves in times of crisis. 

Every coin has two sides. So also buying or renting will also have their own advantages and disadvantages. To compare buying against renting, one needs to calculate the investment return on down payment and other expenses that are required while buying a house. One also needs to calculate the investment returns of the difference between the EMI payments and the rent over the entire extent of ownership, and then decide on buying against renting. Let’s throw light on buying against renting.

2. Buying a House is Essential :

One should have an own house that can protect him and his family in adverse times. Let’s know a few facts about buying a house.

• A Home is an Asset : A property is a tangible asset that comes to rescue in difficult times. Though there are other forms of investments that are volatile, all have seen a drastic drop during the pandemic. Real estate also was affected badly but it bounced back earlier than other types of investments. So buying a property is a secure investment. Real estate investment is a safe investment as compared to other types of investments.
• Learns the Skill of Saving : The desire to buy a house teaches the skill of saving. It toughens the will power and needs motivation to develop the habit of saving. One needs to cut short the expenses for years or till the loan is cleared off. One has to lead a less- abundant lifestyle.
• Endows Safety & Security  : A house, be it rented or own provides safety and security but an own house endows safety and security in times of crisis – like the one everyone faced during the pandemic. Job losses and salary cuts created the fright of rent to those who were in rented houses, but that fear was not seen in the eyes of people who owned the house.
• Offers Handsome Returns : Property is a tangible asset , the rates of which keep escalating. Even in times of crisis, the rates of properties hardly see a down trend. They bounce back soon, so there is no risk in buying a home. An own house definitely fetches handsome returns over the years.
• Hard-Hitting Facts  : A few lucrative facts support buying a property. There are a few offers which have made the houses more affordable. More number of people can avail this opportunity and own a house. Low Rate of Interest has facilitated the opportunity of owning a house. Even the stamp duty is reduced in some places. Ready-to-move-in houses will be the best choice as there is no GST charged on them. Low booking amounts and attractive offers are also some beneficial options and some favourable conditions that can help the buyers in buying a house.
• Offers a Sense of Ownership : Buying an own house provides emotional satisfaction and develops a sense of ownership. It is a roof that shelters not only the present generation but also the generations to come.
• Changed Norms :  With work from home gaining prominence, people need houses that can accommodate the family along with a separate place for online classes of kids as well a place for work from home facility. Accommodating all this in rented houses is difficult as rented houses are not that flexible. Present norms of life demand larger space and renting spacious houses cost heavy on pockets. In times of financial crisis, paying monthly rent becomes a liability as was noticed during the pandemic. 

3. Rented House is Compulsion :

There are people who cannot afford to buy a house. They do not have job security or they may not be earning enough to afford the payment of loans. Such people prefer to live in rented houses. Also in places where residential property is very expensive, people decide to continue living in rented houses. 

• Rent is Helpful : Paying rent monthly isn’t a waste of money because it gives you and your family a shelter especially when circumstances don’t allow you to purchase a house of your own. Sometimes people migrate to other places in search of work and they don’t want to own a property at a new place. In such conditions they take refuge in a rented house. They prefer renting against buying. Life is more lavish if it is in a rented house.
• No taxes & No Responsibility : When you rent a house, you are free from taxes or expenses that may be required for some maintenance. You are devoid of any responsibility of the house because it is the duty of the owner to take care of his property – be it for maintenance, repair or payment of taxes. So life is away from a few of the responsibilities.
• Offers flexibility of Movement : Renting gives the flexibility of changing locations as the job demands. One also gets the liberty of taking career breaks as one will not be bound to constant payment of EMIs.

4. Individual Choice  : 

Owning a house is of course the dream of everyone but circumstances doesn’t allow everyone to fulfill their dream. Some get the success whereas others still continue their dream. Higher prices of properties force people to opt for renting against buying. The choice between the two has always been a tough one. Those who can’t buy for various reasons, just compromise with renting. If a person is not buying a house and prefers renting out, then there must be some bottlenecks which he couldn’t avoid. Otherwise, the present conditions are very much favourable to buying a property. 

Which option is best – buying or renting – is not just about money; it is also one’s comfort and one’s vision of life. What one expects from life- some feel that owning makes more sense while others feel that renting is like just throwing away money but there are still a lot who support renting. It is one’s own decision based on the circumstances and financial conditions. However buying a house for self is one of the best decisions of life because it lasts till the last breath.

– Written By Pallavi Krishna