Renting or Buying – Choose an option that suits you?

Like other prerequisites, buying a home of your own, is a very important milestone that is a major lifestyle and financial goal. In the recent times it may not be a good idea for the youth to indulge in buying a property as an investment. Skyrocketing property prices, especially in metros, have resulted in people preferring to rent a house rather than buying. Many who can afford to purchase a home, on the other hand, face a difficult decision between buying and renting. So, before completely ruling out the idea, let’s measure the pros and cons.


  • It’s an asset: The amount you spend on the rent can be used to pay the home loan EMI for building an asset for life. It also instills a sense of safety and pride in one’s home.
  • Benefit on tax: Investing in a house is a safe investment backed by a tangible asset with the potential for capital growth and tax advantages.
  • Higher appreciation: Property prices are set to appreciate in the next few years.
  • No worry of shifting: If you are living in your own house, you are relieved of the hassle of continuously shifting homes and locations, under any circumstances.


  • Expensive: It definitely means getting into an expensive affair. Not just the upfront cost of purchase that is involved, but you also have to pay charges for maintenance, property tax, renovation and repairs.
  • Illiquid asset: When it comes to real estate property resale, it is proven that it cannot be sold immediately, in case of need of money.
  • Depreciation: There is no guarantee that property prices will always rise.
  • Difficult to move out: Buying a house means you will have to rethink before you have to move out. In case of a shift in job location, you cannot leave until you find a buyer or tenant for your house.


  • Lower rent: When compared to home loan, paying rent is anytime lower. Not just being relieved of burdens of EMI fees, it also spares you from property taxes and other legal problems that come with owning a home.
  • Flexibility of location: If you choose to rent a house, then you have the flexibility of choosing the location based on your convenience and depending on proximity to workplace or school, reducing your transportation costs.
  • Ease of job sifting: You don’t have to worry about maintaining or renting the house if you need to shift cities or countries for your job. So, renting is benefit over buying in such cases.
  • No Maintenance Costs: One of the benefits of renting a home is that there are no maintenance costs or repair bills. This means that when you rent a property, your landlord assumes full responsibility for all maintenance, improvement, and repairs.


  • Rent rise: Besides the usual annual rise of rent, the landlord can increase the rent anytime or ask you to evict.
  • No tax benefits: You do not get any tax incentives for renting out a house.
  • No freedom: There isn’t any freedom of making changes or alterations, without the approval of the landlord in a rented house.
  • Outflow after retirement: You will have to continue to pay rent after you retire when you have no source of any steady inflow of income.

So, the bottom line is that both- buying and renting a home comes with a set of pros and cons. The ownership of a home gives a sense of security and pride, which is definitely unparalleled. Hence, you have to do a thorough research depending upon your requirement, depends on an individual's lifestyle, financial situation, and whether you’re working or in retirement stage, as to what would you choose.