One of the biggest decisions that you make in your life is to purchase a home. It is when you think about buying a home, many doubts may come to your mind, such as:

• Do I need to buy a home? Is my income growing?
• Will I stay in a home long enough to benefit from the purchase?
• Have I got enough money saved?

Deciding whether to buy or rent a home is a significant financial move that can have an impact on your regular expenses.  It is, therefore, essential to consider how this decision will affect your finances and lifestyle.

When it comes to living on a rental versus buying a home, people who favour the former often argue that a rental home costs less as compared to purchasing a home. However, there is more to this.

Let us understand how to decide whether to buy a home or rent it:

Financial Implications

Owning a home is an investment rather than an expense. You get the lifestyle benefit of living in a house instead of renting one. When you buy a home, you can capitalize on its value, which will increase with time. Buying your dream home has become much easier these days with the availability of home loans. You need not wait until the age of 40 or 50 to accumulate money for your dream of buying a home.

Also, it helps you follow a disciplined approach to repay the home loan in the form of EMIs.

By choosing a home loan lender wisely, you can purchase your home even in your 20s. Select a lender who can offer you flexibility in managing your home loan repayment. Customize your home loan EMI to suit your present and future income patterns, and you are ready to enjoy living in your new home.

Sense of Ownership

When you have your own home, you are your boss. You do not have to live on the terms of a landlord. You can provide your family with their own space and privacy, which is incomparable.

Also, if you rent a place, you may end up compromising on several aspects, such as location, size and amenities. On the other hand, when you buy a house, you will ensure that your chosen property meets your expectations. After all, what is better than returning to your own home after a long day of work!

Inflation Factor

Instead of paying rent, which is a pure expenditure, you may pay the home loan EMI, thereby building your asset over time. Look at a home investment as a hedge against inflation. Real estate rates are consistently increasing. If you rent a place, you would end up paying more rent in the future.

Moreover, if you purchase a house, you will know exactly how much to save each month for home loan EMIs as they remain consistent, unlike rents. You can set a strict budget every month. It makes it a lot easier for you to save money when you know what to expect.

The simple math behind buying instead of renting a home says – when you are the homeowner and your home’s value increases, you reap the financial benefits. Whereas, if you live in a rental house and the owner decides to sell, you have to walk away empty-handed.

Not everyone can afford a place of their own. But home loans are a convenient way to finance a home. Reputable lenders such as Axis Bank, provide home loans at reasonable interest rates, with significant tax benefits on EMIs towards the loan amount.