Should You Rent or Buy a House?

Find out whether it makes sense to live in your own home as opposed to living in a rented accommodation

Pooja Khanna Tyagi4 November 2021

Houzz India Contributor. An Architect , Interior Designer, Valuer, a Marathon Runner, and love Writing Poetry and Creative Stories on Building Design. Have been practicing since the year 2000 with specialization in the field of Corporate Interiors with projects extensively published in journals of national repute. Recently honoured with the reputed A3 Foundation award for Journalism for the year 2016 an for architectural poetry in the year 2018. Currently practicing and residing in Delhi and Noida. Website: www.khannaenterprise.com, Email: poojakhanna224@gmail.com, M:9891993392

Owning a home is a yardstick of financial well-being but many of us prefer to stay in a rented property. Although living in one’s own house gives the sense of belonging and has a lot of benefits, lately living in rented accommodation is becoming a popular trend, especially among millennials. We evaluate the strengths and shortcomings of living in a rented home to help you decide if it is right for you.

Ace Associates

Pro: Economically viable

The biggest advantage of staying in a rented property is that a huge investment and hefty down payment to buy the property is not required. Note that the cost of a new home is spread over a period of few years in the form of home-loan EMIs and an additional amount for registry.
It is economically more viable to stay on rent because the tenant only has to pay an extra security deposit, which is not more than one month’s rent. This amount is returned by the landlord provided the tenant has not caused any damage to the rental property.
Another plus is that tenants have the choice of living in a luxurious property in a premium location which they cannot afford to buy. Nowadays apartments are easily available on rent in premium condominiums with amenities such as a swimming pool, a fitness centre and various outdoor game areas.
A rented home is financially more feasible because no investment is required for fabricating the kitchen, built-in wardrobes, electricals and bathroom and so on. The home is handed over as a semi-furnished, fully furnished or as an unfurnished apartment to the tenant.
Additionally, a tenant does not have to pay any property tax for the rented home.

HomeLane

Pro: Easy to maintain

Although the total rent of the home includes the monthly maintenance charges of the building or the condominium, the tenant does not have to invest in major expenses such as wall painting, or repairing dampness or plumbing, as these are the landlord’s responsibility. Keep in mind that these are the hidden costs of living in one’s own home.

Pro: Ensures mobility

A rented property gives the tenant the freedom to change from one location to another within a month’s notice.
Tenants can live in expensive homes or anywhere they wish while homeowners are compelled to live in homes which they can afford to buy.

Abhishek Shah

Con: Restrictions

The tenant cannot renovate or make any changes to the internal layout of the home, or to the bathroom or kitchen design.
Some rental homes come with a no-pet policy so your dog or cat will not be allowed.
Another disadvantage is that a rented home does not give the emotional satisfaction of ownership and a sense of security.

Note: Living in one’s own home gives the homeowner the freedom to customise the home as per their requirements and creatively decorate it with built-in furniture, wall cladding, false ceilings and other permanent design features.

10 Must-Have Pieces of Furniture for Every Renter

Usine Studio

Con: General issues

The tenant will have to wait for the landlord to take action to get the repair work done.
The tenant has to abide by the rules of the rent agreement.

Con: No return on investment

When a homeowner purchases a property, it becomes an asset because the price of the property increases over time, depending on it’s location and amenities provided. However, in a rented property there is no wealth creation and no return of investment because a tenant is not the legal owner.

Find an architect on Houzz

Ricken Desai Photography

Con: Renewal of agreement

The tenant will have to get the rent agreement renewed after a period of 11 months. The landlord usually increases the rent after every 11 months as per their agreement.
Some landlords take possession of their premises from the tenant after a period of 11 months and the tenant will have to relocate to a new home. The resultant packing, unpacking and settling into a new location can be a tedious job that requires a lot of time, energy and money.

Mangrove Collective

Verdict

A rented home is best suited for those who do not intend to stay in the same place for a long time.
It is convenient for those who are frequently travelling or face a sudden change in job and have to relocate to a different city.
If one does not have enough funds or does not want to take the responsibility of home-loan EMIs then it is advisable to go for a rented home.
Some tenants prefer to rent a home near their work place or their children’s school.

However, if you are looking for a long-term home ownership because your ongoing work is permanent or are planning to start a family, then it is highly recommended to purchase a home and live in it so that your home becomes one of your most valuable assets.

Read more:
7 Ways to Decorate Your Rented Flat
How to Make a Rented Apartment Feel Like a Home

Tell us:
Do you live in a rented home? Share your experience in Comments below.