Buy or rent a home? Know the advantages and disadvantages of EMI and rent before taking a decision.

Buying a home is everyone’s dream, but the question is, what will be more of a burden – the monthly installment or the house rent? This is a dilemma we all face from time to time. Let us understand the complete information.

If you are just starting your career or don’t have a stable job, leasing is the best option. There is no hassle of down payment, nor burden of loan. You can change houses whenever you want. But there is a problem! The rent increases every year, and even after 10-15 years the house is no longer “yours”.

EMI means you are owning your home by making monthly payments. It is an essential investment. It may seem expensive in the beginning, but after 15-20 years the entire property becomes yours. And yes, home loans also come with the added benefit of tax exemption.

Simple: If you have a stable job and expect your annual income to increase, you can afford EMIs. However, if your job is very uncertain or you have to change cities frequently, leasing is a good option. Flexibility is very important.

Paying only rent is a “rent trap,” a process in which money goes in but nothing gets back. Another smart approach is to buy a house and rent it out if you have the budget. Your EMI can also be paid from the rent money. You will have a house and the burden on your pocket will also be less.