Buy or Rent?

faq2When one buys a house, he has to make a big investment out of his pocket which is always burdensome. However, in this modern age of easy availability of Home Loans you can easily finance your dream of owning your house by calculating your EMI outgo per month on the online EMI calculator.

Although living on a rented house feels light in your pocket, but does not give the satisfaction of owning a house. Living in a self owned house gives a peace of mind and stability in terms of investment in the long run. Keeping in mind all these factors, LoanKuber has prepared following points comparing advantages and disadvantages of buying a home or to continue living on rent-


  •         If you have enough cash to spare for a new property in a major city, then buying a house is a good option.EMI Calculator If you apply for a Home Loan, even then the banks would finance 80% of your requirement which means you have to pay 20% of house price from your own pocket.
  •         Other expenses like property tax, insurance, annual repairs, maintenance, etc would increase with buying a house.
  •         You should buy the house only when you have decided about living in particular city for a long time. If you decide to live in a city for at least 10 years, then only you should go for buying a house. Otherwise, it would reduce your mobility if you get a good opportunity in other city.
  •         If your current annual rent for a house is greater than 6% of market value of the property, then buying a house is a good option.
  • faq4        You should also look into your current as well as future expenses before buying a house.
  •         Buying a house is a good option if it doesn’t changes your lifestyle drastically. Even with Home Loan, your emi shouldn’t eat into your regular expenses.
  •         Do not buy a house for emotional reason. There is always societal and peer pressure to live in one’s own home. Don’t fall for it if you can’t afford a large expense on down payment for a house.


  •         You should choose to stay in rent if you are not sure about your future location. faq3This is especially true for an individual whose job involves rapidly changing cities from job to other.
  •         One should always remember that renting doesn’t create any assets whatsoever, while buying a house creates an asset whose value will appreciate with time.
  •         On renting a house one receives additional benefits like House rent allowance on Income Tax returns.
  •         Renting doesn’t gives a peace of mind to individual living on a rent and it also involves hassles of moving from one place to another on a short notice.
  •   faq6      Renting is always considered a good option when property prices are at peak compared to rent expenses.
  •         Renting also gives an option to move to a different city as and when good opportunity arises.

There are many advantages and disadvantages of both options. We at LoanKuber can safely say that you should buy a house when you can and don’t buy a house just due to peer pressure. There are plenty of EMI calculators available online which would tell you the better option among each of them by looking into various factors including your current income, lifestyle, property prices, property taxes etc.