Reasons Why You Should Opt for Buying a House Instead of Renting?

According to the 2011 census report of India 11.1% of the total Indian houses are rented apartments. Making it more relevant to the topic we discuss here, in urban areas, 27.5% of the total urban houses are rented out. Buying a home is everyone’s dream. From the day one starts earning, most investments get planned in the direction of realising the ultimate dream of buying a house. For some it is a necessity, others look up to it as financial security and some even consider it a status symbol. Whatever, maybe the end aim, the underlining fact remains that a home is a significant investment, but it stands as security for you and your family. Sooner or later, making this investment and securing your family is a must. Along with a sense of security, buying a home has many advantages. Among others include,

According to the 2011 census report of India 11.1% of the total Indian houses are rented apartments. Making it more relevant to the topic we discuss here, in urban areas, 27.5% of the total urban houses are rented out. Buying a home is everyone’s dream. From the day one starts earning, most investments get planned in the direction of realising the ultimate dream of buying a house. For some it is a necessity, others look up to it as financial security and some even consider it a status symbol. Whatever, maybe the end aim, the underlining fact remains that a home is a significant investment, but it stands as security for you and your family. Sooner or later, making this investment and securing your family is a must. Along with a sense of security, buying a home has many advantages. Among others include, 

No Hassle of Landlords & Frequent Shiftings: When you live in a rented house, you will have to live as per the whims and fancies of the landlord. Some level of interference is bound to happen. Moreover, whenever the landlord wants you will have to vacate the premises within the generally agreed one-month notice. This frequent shifting of a house can be an additional cost. Other than shifting, you will have to go through the hassle of house hunting, paying money towards brokerage and other uncalled for movement expenses. While once you own a house, you can live in it for as long as you want and do things as per your fancy.

Monetary Gains:
Buying a home turns out to be a financially beneficial proposition as against renting. Consider the below case studies,

Case 1:
A person lives in a 2 BHK rented accommodation and pays a current rent of Rs. 20000 per month.

Case 2: A person buys a 2 BHK home for Rs. 40 lakhs and takes a home loan of 20 years against it. Assuming the person lives in this house for the next 40 years, the below will be the calculation,

Case 1 (Rent)

Nature of ExpenseMoney Spend
Rent (PM)20000
Annual Rent Appreciation 5%
Expected Rent After 20 Years (PM)40000
Expected Rent After 40 Years (PM)80000
Total Amount Paid as Rent After 40 Years2.9 crores


Case 2 (Own House)

Nature of ExpenseMoney Spend
Home Loan Amount40 Lakhs
Tenure20 Years
Rate of Interest8.3%
EMI34,200
Total Amount Paid in 20 Years82 Lakhs 
Total Savings After 40 YearsCrores

Other than the above calculation, buying a home is also an investment that you make. The value of this home will appreciate over the years increasing your wealth manifold. 

Fixed Outgoing Income, More Salary at Disbursal: Unlike the rent that will keep increasing year after year, the EMI amount stands fixed for the next 20 or 30 years. The house rent will increase at least 5% every year. When your EMI is fixed, and your monthly income will increase annually, you will soon start having a surplus to make other investments or pay-off your home loan early. An EMI turns out to be cheaper in the long run as against the rent. Let us consider, the below case study and see how eventually, a chunk of your salary will go into paying the house rent, while the ratio comes down when you buy a house. 



Case 1 (Rent)

Case 2 

(Own House)

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So, there is an emotional, financial and social security for you and your family in buying a home as against living in a rental accommodation. Moreover, with the smart city projects by the authorities, investing in Tier II cities will further turn out to be a profitable investment. One such city, which is emerging as the topmost smart city in India is Nagpur. Recent city wise surveys indicate, “nearly 93% of localities in Nagpur are showing an upward price trend.” With a spurt in infrastructural and commercial development, this city of oranges offers an affordable housing market and increasing employment opportunities. Soon after, Nagpur was announced in the smart city project it increased the investment conversion ratio by 249% with an investment line-up of 2500 crore as against the proposed investment of 1002 crore. If you are looking for a reliable and well-equipped option in Nagpur, then learn more about the Vrindavan township by Radha Madhav developers. A complete township project with row houses and apartments in Nagpur in Jamtha, it is a one of its kind project andan ideal investment in central India. There are 1-4 BHK flats in Nagpur, 1-2 BHK Row Houses, 4-6 BHK Bungalows and 3-4 BHK Duplexes with every modern amenity and convenience. There is club house, swimming pool, temple, garden, shopping complex, multiplex, gymnasium, cricket stadium and many more amenities under one roof. To know more about this project, click here, connect with the team and fulfil the dream of your home, today.