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In India, the guilt of not owning a home is centuries old. However, Generation Z is coming to shatter old chains and pave the way for new methods even if our society has gotten more accepting of debt, which has made purchasing a home simpler.
Have you weighed the reasons to not buy a home and considered the option of renting instead? Does it seem logical to you?
This will all sound right once you read the list of reasons why you should not purchase a property in India, which is provided below.
Here are some of the best reasons to avoid buying a house in India:
Asset > Liability
You are purchasing a home in a desirable area by incurring debt against two individuals, namely you and your husband.
The good news is that you have a higher amount approved, but have you considered the downside?
This also implies that you and your partner will have constant work regardless of what happens. Why? Because you got a loan based on joint income, one person's salary may not be enough to cover the monthly installments.
So, don't you think it's preferable in this instance to rent a house and avoid all the worry and tension? It is preferable to hold an asset rather than a burden.
Renting is Less Expensive
Is it imperative to purchase a house or merely rent one if the main goal is to have a roof above your head?
Have you ever considered that homeownership brings its own set of responsibilities?
On the other hand, renting is far less expensive and frees you from obligations. You are not responsible for maintenance, repairs, property taxes, or anything else.
Inadequate Return On Capital
Residential property provides a meager return on investment.
In the best-case scenario, if you rent out your property, the value will be approximately 3% on average, while the interest on your home loan would be 6%.
Peer Pressure Doesn't Pay Off
Just because your friends are purchasing houses and settling down does not imply you have to as well.
Buying a property is a major obligation that will bind you for the following 15-20 years unless you have the entire amount of money to pay all at once.
You'd be far better off and more secure if you invested in commodities, mutual funds, or even started your own business.
You don't necessarily have to follow the crowd to be on the correct track.
Lack of Job Security
Purchasing a home is a long-term commitment that also necessitates a solid career.
Even if you have a hunch that your employment is in jeopardy, it is not a sensible move. This is where the majority of folks go wrong.
They end up taking out house loans to lose their employment and fall deeper into debt.
Again, renting a property would be considerably easier due to the lower amount of money needed and the absence of additional fees.
What Should You Rather Invest In?
According to most financial experts, purchasing a property is pointless unless you intend to remain in the city for the following 8-10 years.
If you are often transferred, renting is a far better alternative unless you want to buy a property for investment grounds.
Even so, if you're looking for bigger returns in a short amount of time, reconsider.
Because it takes around 7-10 years for any property to generate profits. Thus, investing in a property is meaningless unless you are willing to hang onto your asset for this long.
If you invest the same amount you want to spend as a down payment or EMI on a property, you should do it in the financial markets or debt/equity investments. You will get a considerably better rate of return on your investment.
So, in the end, both renting and owning a residence have advantages and disadvantages.
Without question, having a property means you may change, redesign, and reconstruct it as many instances as you want to meet your demands, as well as an unparalleled sense of pride and safety.
On the other hand, you must always be prepared to absorb any unexpected charges and the ever-increasing upkeep costs over time.
We recognize that deciding whether to purchase or rent is a difficult decision.
On the other hand, renting a property allows you to live more flexibly while also allowing you to better manage your money due to a predetermined monthly rental payment.
The sole downside of renting is that the house owner makes all decisions, major and little. So, consider all these factors and assess your financial situation when you take the jump.