Owning a Home or Living on Rent

While, there is pride in being an owner, the economic logic sometimes defies emotional bias, making renting a house a more favorable option.

Renting and buying a home have their own set of advantages, suited for different requirements. Renting a home is suitable for young professionals who prefer staying closer to their workplaces. Owning property assumes significance for older age- group who prefer to have the stability and security of their own home.

Home ownership creates an asset for the family, home loans are getting cheaper, offers tax benefit and affordable housing is getting a boost. Renting a home offers flexibility to city-hopping professionals, saves on property & maintenance tax, heavy EMIs that are more than monthly rents and option of investing in tax-free, high return equity diversified fund for the same period as home loan.

 Indian residential market is no longer a viable option for short-term speculators. Value creation is largely happening over a longer investment horizon.

Owning a home is considered a source of social and financial security in India. In India, you don’t have the concept of social security. The penetration of insurance is very low. The stock markets are volatile, risky and intangible. A property investment is secure and tangible and at the same time high-yielding. Properties in urban areas from residential, land and low entry commercial, retail will always be in demand and therefore will always yield good returns and capital appreciation making it a favorite investment and asset class.

Overall buying is always a better option than renting owing to asset creation for residential purposes.

About the author


A graduate, a real estate professional and social activist helping the local ALM in engaging authorities and political leadership for resolving civic issues, helping out as a part-time teacher in the local missionary school for underprivileged children and as a liaison with government bodies, head a large society as a chairman and spearheading its redevelopment process and founder of India Housing Hub - a property consultancy in the western suburbs of Mumbai.

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