There’s much more to a home than just four walls and a roof. It ignites several feelings and thoughts inside us. For some, it is a sense of security; for others, it is about comfort, while being a sign of rank and achievement for others still. Choosing whether to take a housing loan or not is a dilemma a majority of us face. It is one of life’s difficult choices. Though before that, one must decide on their need to buy a house or rent it or take out private loans.
When a person decides to buy a house, they actually decide to live a less copious life. Therefore, buying a home, along with money, also requires a lot of willpower and motivation. Residential property has become so costly in Indian cities that some individuals prefer to continue living in a rented apartment. They really can’t afford a good home to buy. However, is that the right decision?
Benefits Of Buying a House Vs. Rental Accommodations
The key advantages of why one should buy a house instead of living in a rented home are:
A sense of comfort and homeownership pride.
You are not going to have to face increasing rentals.
You are already aware of the EMI needed to be charged over the long term when you purchase a house with a housing loan. The future costs are, therefore, predictable and more stable.
When you live in your own house, there are fewer chances of intrusion in your life.
While owning a house has been one of the primary financial goals for every person, the second thought arising in such cases is ‘How can I go about allocating funds for my house?’ Glad you asked! In such situations a Housing Loan can be a great solution to your concerns. Here are a few advantages a housing loan offers bring you closer to your dream.
Growth of Your Fund
You should go for a housing loan service to save on taxes, even you have to funds to buy it on your own. You can instead invest those funds to get an attractive return. For instance, depending on the credit score, loan amount and tenure, the current interest rates on housing loans (floating loans) vary from 7.9 per cent to 8.3 per cent per annum. Following the RBI Directive, these minimum value rates are being extended to the banks to connect retail loan rates to an next level standard like the repo rate.
Suppose you face a situation that leads to money crisis and have to depend on financial solutions such as a personal loan relative to your housing loan interest amount or installment loans. In that case, it can cost you much more interest. Hence, there is no benefit in using your own money to buy the house and not be ready for future emergencies. Your savings will shield you from the risks of life and help to achieve other essential financial objectives.
Evaluation of the Property By Bank
Before funding a project, banks perform a evaluation and evaluate the real estate investment property, which reduces the threat to a great degree. Before authorizing a loan, they check the documents of the property. So, it becomes better than an unapproved project when you take a home loan from the financial institution that has already authorized the project.
Furthermore, another mortgage tip to consider is mobility when deciding if renting or buying is right for you. If you intend to stay in one place for a long time, buying may be a viable option for you. Of course, you need to assess your current life situation. Try to realistically think whether or not your plans in the future could change. For example, you may have recently gotten married and are looking to start a family. In this case, taking out a loan may be right for you if you have found a property with enough space for you and possible future children. Naturally, you want to find a location that can accommodate a growing family for the long-term, if these are your goals. Whatever your current situation may be, it is critical to account for your financial resources as you make your choice. Definitely, consider how mobility impacts the long-term value of your decision.
So, taking a housing loan is always better than renting a home. There are reputed financial institutions like Axis Bank that offers the best home loans. You can use their home loan calculator to understand their housing loan interest better. They also offer two types of interest rate—fixed housing loan interest rate and floating housing loan interest rate. Consider these points to choose the one the suits you the best.