Is it better to rent a home or own a home in Mumbai? Let us find out:
Owning your own home provides a sense of security, builds equity, provides stability and is an asset you can fall back on in times of need
As the average age of a home buyer keeps reducing, it would seem easier to buy property at present, because of value for money prices and tax benefits that comes when purchasing your own home.
APPRECIATION
International trends suggest that real estate gives an 8-10 per cent annual return. Therefore, appreciation is guaranteed over a period of time.
ALTERING, MAINTENANCE
Owning your own home gives you a free hand to make alterations In the property. You are also not dependent on the landlord id maintain the property.
HOME LOANS
The rate of mortgage interests ie., the interest charged by the housing finance company on home loans is still at affordable levels.
INCOME TAX
The Income Tax Act provides for deduction on interest payable on capital borrowed for acquisition or construction of a property. For most of m such tax concessions make sense to own a home by availing a housing loan.
RENT vs OWN
House rent is usually about 20-25 percent of your monthly income as compared to the 35-40 per cent that goes towards EMI. However, the annual tax saving on EMI means that the actual figure comes down to roughly 30 percent of your monthly income
Owning your own home provides a sense of security, builds equity, provides stability and is an asset you can fall back on in times of need
As the average age of a home buyer keeps reducing, it would seem easier to buy property at present, because of value for money prices and tax benefits that comes when purchasing your own home.
APPRECIATION
International trends suggest that real estate gives an 8-10 per cent annual return. Therefore, appreciation is guaranteed over a period of time.
ALTERING, MAINTENANCE
Owning your own home gives you a free hand to make alterations In the property. You are also not dependent on the landlord id maintain the property.
HOME LOANS
The rate of mortgage interests ie., the interest charged by the housing finance company on home loans is still at affordable levels.
INCOME TAX
The Income Tax Act provides for deduction on interest payable on capital borrowed for acquisition or construction of a property. For most of m such tax concessions make sense to own a home by availing a housing loan.
RENT vs OWN
House rent is usually about 20-25 percent of your monthly income as compared to the 35-40 per cent that goes towards EMI. However, the annual tax saving on EMI means that the actual figure comes down to roughly 30 percent of your monthly income
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