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Renting vs Buying – Which Is Better?


Every people living in Kerala will have a dream of owning a home. But the skyrocketing property prices of real estate properties, especially in cities have led people to opt for renting. But a lot of builders are providing villas and flats at a budget-friendly price in Kerala. A lot of villas in Kottayam, pala, Trivandrum and cochin are available in major cities of Kerala.

This is really a tough question in the Indian scenario. The people who can afford to buy a house tend to put more weight on owning a house. There are definite advantages and disadvantages to both choices when we analyze the pros and cons of both options, and some of them are summarized as follows. This guide will help you to cross-check your decisions based on different scenarios.

Advantages of owning a home over rental accommodations:

It gives a self-security and pride of ownership.

Homeownership will be an added asset to your wealth. This can serve as collateral for a loan to submit to a bank if you need to borrow money in the future.

Responsibility for Repairs and Maintenance

When you own a home you will be fully responsible for the maintenance and repair works of your home, whether that means doing the work yourself or hiring a professional.

Freedom to remodel

There are a lot of options to remodel and renovate your house. Homeownership provides more flexibility in renovation according to your choice. when renting generally means that you have to accept the space as is. You don’t have much freedom to make changes to the premises. You have a lot of creative freedom over your living space as a homeowner.  repaint your walls and interiors, redesign, or remodel the interior however you like without anyone’s approval or consent.

 EMI Benefit

Paying EMI provides you Dual benefits of providing you shelter and it also adds as part to your ownership of your house.


 While renting it’s necessary to relocate after a time period. which entails a lot of wasted time, money and energy, This can be avoided in the case of Homeowning.

Tax Benefits

 Real-estate investment is a safe investment backed by a real asset which has the potential for capital appreciation and tax benefits.

Advantages of renting:

No legal Issues

 Renting does not overburden one with regular  EMI payments with banks, house tax and other legal issues that are part and parcel of property ownership.

Low liability

 Renting generally provides a feeling of lower liability. In large metro cities, you can rent a house worth Rs 50 lakh with Rs 10,000-15,000 a month. At the same time, when you buy a home for the same cost, you have to spend about Rs 30,000 as an EMI (equated monthly instalment).

Closer proximity

One can rent closer to your working firm, or schools, or for transportation but properties will not be available in the good price range in close proximity when we opt for buying.

Key Differences Renting vs Buying ?

Property Values

As noted above, homeownership is a fixed asset. But like any other investment, certain factors affect the value of your home positively or negatively, including:

  • Surrounding Economic issues
  • Home Maintenance
  • Environmental concerns
  • Outdated interior designs
  • Exterior conditions of your surroundings and neighbours
  • Housing surpluses

These factors can affect a  renter also in the rent price. These things will depreciate the price of your own house also.

Tax Benefits

Homeowners may benefit from certain tax benefits. The home mortgage interest deduction will lower any out-of-pocket expenses during the starting time of the loan.

Of course, if you rent, your mortgage tax deduction will not be there at all. you can still avail standard deduction that’s available to all taxpayers. The same is applicable for homeowners who don’t have enough deductions.

Repairs and Maintenance

As explained above, if you are a homeowner repair and maintenance is your responsibility. This can be very costly. And frequent renovation projects don’t often increase your home’s value compared to what you spend on that. 

Which is Better Renting vs Buying ?

There is no perfect answer to the question of whether renting or owning a home is better. The conclusion depends on your own personal situation and the preference of your family members—your financial state, lifestyle, and personal goals. You need to calculate the benefits and the costs of each based on your income, savings, and how you live.

Is Renting Cheaper Than Owning a Home?

Renting is a  predictable expense in the future. You know the rent and your budget and can plan accordingly. On the other hand, if you need a luxurious lifestyle, you may find renting to be a little more expensive compared to owning a house of your own.

Is Homeownership a Good Investment?

Owning your home can be a very good investment for the future. You can build equity. But like any other investment, your investment performs depends on a number of external factors. In real estate, factors like location, the economy, maintenance, and environmental concerns can affect the overall value. And keep in mind, that it’s never static, so things can change.

Renting vs Buying The End

The choice between renting and owning is a little bit complex process. Only a careful analysis of both scenarios would help one to reach a proper conclusion. First, understand the financial implication of renting vs owning through an example of a person who wants to own a property in a major town or city region. The first step is to calculate the capital needed to buy a ready-to-move-in flat in a residential project assuming the market price is Rs 50 lakh. The down-payment and associated transaction costs have to take care of before that. Next, take the rental properties in major cities and calculate the rent for each year. So think wisely and take your decision. Always take decisions based on your financial background and income and take the preference of your family members also before moving to new villas or apartments .Be future focused on every decision

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