The ease of obtaining a home loan to purchase a house has struck a dilemma in most people’s mind. Is it better to buy a house or rent one? Although buying a house is a huge financial burden, does it make of for the rent paid over a long term?
Buying a house, although expensive, is a very good investment. History has taught us that real estate prices are bound to go up even if the realty market dips every now and then. The value of appreciation is well worth the initial financial burden that one must go through to purchase the house. However, one must keep a lot in mind before choosing to invest in a house, like the market rates, location of the property, etc. Buying a house by availing a home loan helps an individual attain tax benefits.
Renting a house may help an individual save on down payment for a house, EMI, etc., but the rent paid may be exhausting him/her financially depending on how long the individual has been renting a house. Rather, an individual could invest money that he may have for a down payment on mutual funds, PPF, or other such investments until he/she receives a sizeable return. This money can then be used to make a larger down payment which will then in turn help the individual save on interest while obtaining a home loan. However, in case of urban areas where prices of houses are extremely high, a case could be made for renting a house as opposed to buying one. Also, relocation would be easier in case of a rented house.
Benefits of Renting a House
Renting a house can help an individual potentially build a higher bankroll by investing the money he/she would have invested towards down payment of a house.
Renting a house is sometimes more effective in urban areas where property prices are high.
Relocation in case of a job change, etc. can be easier in case of a rented house.
Benefits of Owning a House
Owning a house gives an individual more freedom as he is not liable to an owner.
A house is an asset that acts as financial security to protect you and your family.
It is a good investment to own a house as it is bound to appreciate in the future.
Home loans can help you avail tax deductions, helping you save a sizeable amount of money.
The EMIs on home loans tend to remain stagnant throughout the tenure of the loan, while the rent payable increases every year.
Factors to Consider Before Making your Decision
Consider the possibility of you changing your locality
Use a EMI calculator and estimate if you will be able to afford a home loan
Buy vs Rent Calculator
Many online portals have buy vs rent calculator that accurately provides you the total expenses of buying a house or renting a house. All you have to do is enter basic details of the home loan, rent, etc., as requested by the portal and click on submit. The portal will then provide you with the total buying cost and total renting cost for a particular duration.
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I have taken a home loan from LIC HOUSING FINANCE on 3 years back to purchase site and for construction my friend has suggested to take this loan. I got loan the loan amount around 27L with tenure period of 20 years. The rate of interest was 8.75% and processing fee was deducted around 8K. They have sanctioned the loan within 15 days. But they have disbursed the amount in installment. EMI need to pay of 28K. Pre closure charge is applicable at any time. There are some charge for enclosure and stamping are around of 2K.
I have applied for HDFC Ltd home loan through online .I was working in Cochin and my native was Patna so need loan on Patna since residing in Cochin at that time unable to get the loan .The rate of interest was very high and the agent gave all the information about the loan process as well as got proper response .
Taken my home loan from UCO bank because they have offered me a interest rate of 8.4%. Chosen UCO bank because one of my relative is working over there. They took 1 month to sanctioned this loan. I got the loan amount of Rs. 10 lakhs. I pay the EMI amount of Rs. 15000 for the duration of 8 years.
Before 5 years ago, purchased my home loan from LIC Housing finance. Due to the low interest rates, i have selected LIC Housing. Taken the loan amount of Rs. 12 lakhs and i am paying the EMI amount of Rs. 17000 per month. Total duration of the loan is 10 years. I got the interest rate of 8.35%.
I have taken home loan directly through ICICI Bank.I have taken this loan for house construction purpose.The rate of interest and the processing fee was less .This loan was sanctioned immediately and paying the premium on EMI basis .Everything was smooth and there was continuous callback and follow up from bank end.
I have take home loan directly through Aadhar Housing Finance Ltd. The rate of interest and the processing fee was high .They have taken 1.5 lakhs for insurance from me and told the rate of interest was 11% and later it was 14% which am not happy .The information should be appropriate this is my suggestion.
Fraud bank. They increased the interest rate to 13% without notifying me. Even they removed that from their website. When I asked them my current interest rate, then I came to know that it's 13%
So initiated BT immediately (It took long for BT in my case). They lost all my belief in them.
I have taken home loan directly through Development credit Bank.This loan is still active on my account .The rate of interest and the processing fee was very high that was the issue.I have submitted the required documents through the agent .I have taken this loan to buy plot.
I have taken home loan directly trough ICICI bank.The rate of interest and the processing fee was quite nominal .The loan amount got sanctioned on time without any delay .This loan is still active on my account. Banking service was much comfortable and satisfactory.
I have taken home loan directly through HDFC LTD .The rate of interest and the processing fee was really good .The home loan process was clearly explained by the agent .I have got this loan without any delay . Overall am really satisfied with the service so far .
I have taken home loan directly through DHFL and everything was good to me so far .This loan is still active and am paying the EMI via ECS. Their rate of interest and the processing fee was medium . Even there is no extra charge for late payments.
I have taken a Home Loan from SBI through bank directly. The loan amount was 12L and the rate interest was 8.25% normal. Total amount I am paying of 11,400 rupees. 11K is EMI and the 400 rupees is for insurance with the tenure period of 20 years and I received the amount within 30 days.
I have taken home loan directly through SBI .The rate of interest was nominal and this loan is still active .For constructing home i have taken this loan .Everything was good to me when availed this loan .The loan process was clearly shared by the agent .I am really satisfied with the service . Without any hassles got this loan and i am really satisfied with the service .
From LIC Housing Finance, i have taken a home Loan because the document submission is very less where in other bank, there are lots of documentation process. They have sanctioned the loan within 1 month . I got the loan amount of Rs. 27 lakhs. The total tenure period was 20 years and the rate of interest was 8.8% which is good.
I have taken Home Loan directly through LIC Housing Finance. The rate of interest was 5% because i am a LIC employee so they have provided me the loan quickly and it was sanctioned with in week. I had given all required documents during verification process.
I have taken Home loan through Bajaj Finserv before 2 years.The rate of interest and the processing fee was nominal.I am paying the premium on ECS and the loan process was clearly shared by the agent. I am paying the premium on exact time without any delay. The process was very quick, smooth and satisfied.
I have taken a home loan from PNB bank before 1 year and i have applied through online. The loan was processed through bank . The process was smooth and loan got sanctioned on time. The loan amount was sufficient for the tenure of 34 years and the amount was Rs. 21L. The rate of interest was nominal 8.5% .
I have my housing loan from HDFC because documentation process was easy and I can check everything on their net banking. On their portal, they have a option to change the interest rate for that there will be a extra charges based on the credit i have and they will decide the interest rate based on the customer profile. The process is so simple. Whatever the requirement is there for me I can do it on my own through net banking.
I have taken a home loan in PNB bank before 3 years. The loan was processed through bank . The process was smooth and loan got sanctioned on time. The loan amount was sufficient for the tenure of 25 years. The rate of interest and the processing fee are nominal.
I have taken a home loan from Central Bank of India and it was a good loan experience. The loan amount was for Rs 30 lakhs with the rate of interest of 8.25 % which is less when compared to all other banks. The process was medium and it took 2 months to receive the loan. Customer service was good. The tenure of this loan is 20 years .