There is always this constant debate as to whether renting is better or buying a house is better.
After 11 years of renting, I feel that buying is a better option.
In the past 11 years after graduation(excluding post-graduation accommodation expenses), I had shelled out close to INR 19.5 lakhs in rent alone. This amount can never be returned. HRA did save me taxes, but only INR 3 lakhs. I feel that the remaining amount could have been used as down payment and I could have bought an apartment.
We recently bought an apartment and made sure that we don’t pay an EMI of more than 15% of our total monthly household income.
What are everyone’s thoughts on this?
If you’ve stayed in the same house for 11 years then yeah, buying it 11 years ago probably would have been better for you.
But, you can’t change the past. Looking forward, it’s time to buy when you are ready to commit to staying in the same house for more than 5 years or so. If you stay less than that you will likely “throw away” more money in closing costs and interest than you would on rent for the same number of years.
Renting long-term can also make sense if you only need a small amount of space, and buying a small condo in your area isn’t an option or isn’t cost-effective because the HOA fees are too high.
You’re really supposed to rent as a research phase, and buy once you know exactly what you want ( and what you are willing to consolidate for, price wise. )
It also depends on the mortgage rate you get.
And you could have spent the same amount on necessary home repairs that you never would have recouped the cost on.
It largely comes down to preference and what makes the most sense for your particular situation.
Renting can make a lot of sense for short term reasons. I’ll never understand the people who argue that renting is somehow financially better in the long term though.
Yeah, owning a home comes with it’s own expenses, but as a renter you’re still paying for those expenses every month. Don’t think your landlord is putting on a new roof or replacing the HVAC system with his own money.
You buy home because you love to stay in that home and it makes you comfortable and not just to get break on taxes. It also seems you already bought the home so you should be happy with your purchase and enjoy it rather than second guessing it.
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