Getting freedom from rent is a sensible option

With property prices stagnant for long, home loans available  at lower interest rate and government offering substantial subsidy on  mortgage interest to first time home buyers of affordable homes, it makes sense to buy a house and get freedom from rent..

Renting may seem cheaper compared to EMI in the short term but on a long-term basis, the total rent paid turns out to be higher than the sum of EMIs  paid towards the cost of owning a home.Over the past one year home  rents have increased by about 10 percent whereas homes have become more affordable.Unlike EMIs , rents vary from year to year as landlords put a clause  of  annual rent escalation in the lease agreements. Not just that, landlord may refuse to extend the yearly lease and one may have to incur expenses on moving out, besides facing lot of inconvenience and instability On the other hand if the tenant has to vacate the house before the lease tenure expires, he has to pay the full rent. Also due to various restrictions put by the landlord, tenant feels his privacy is infringed.Homeownership on the other hand gives sense of ownership and provides stability in life.

Says Pradeep Aggarwal, Founder & Chairman, Signature Global, ” Home ownership  results in  compulsory saving and gives freedom from rent, it is  also an investment  that grows in the long term. Moreover, a home owner can mortgage his property to meet emergent financial needs “.

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