When it comes to finding an ideal home for the long term, we always consider two factors that make better sense: living in a rented house or buying a new home. People always think that a rental home costs less compared to owning a new home.
Although, every individual dreams of owning a home, the skyrocketing prices of residential properties have led people to go for renting homes, rather than buying a new home in Bhopal or any other city for that matter. Also if a person is definite about his future, certain about the town within which he will stay, and has funds for payment it’s highly recommendable that he owns his own house.
Top Benefits of Home Ownership over Renting Accommodation:
• It forces savings within the sort of EMI payments which individuals in a very rented house would spend.
• It brings a sense of pride and security in homeownership.
• Value of home will appreciate over time and if you sell it you’ll earn an enormous profit off the sale.
• Owing ready possession flats in Bhopal bring greater freedom with zero restrictions of a landlord.
• Rentals could appear cheaper than EMI in brie, but it’s more than the cost of the house and rental cost cannot be recovered in the long term.
• Also no danger of a landlord can anytime tell you to vacant the house or restrict the number of years a tenant can occupy.
Case 1: Living in a Rented Home – Per month rent – 20,000/-. Appreciation each year 5%. Expected rent after 20 years – 40,000/- per month. Expected rent after 40 years – 80,000/-per month.
Amount paid in 40 years: 2.9 Crores.
Case 2: Owing to a House – Assumed home equity credit amount: Rs.40Lacs. Tenure: 20 years. Interest rate: 8.3%. EMI: 34200/-
The total amount paid in 20 years: Rs 82 Lacs. Rent amount saved by a homeowner who lives for 40 years (excess amount paid by the tenant in last 20 years) Rs 2.1 Crores.
Hence, the cost of living in a very rental property is much more than living in one’s own residence.
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