A home is a place you live and it is more than just walls and roofs. It is a place of security and comfort where you can relax. For some people, it is a status symbol and an achievement. There is also another aspect of home ownership to be happy with. The financial aspect of owning a home is as important as having financial security. The financial arrangements are very important as buying a home is the biggest financial transaction.
When you have your own house you can afford to walk in anytime and do anything you want at your home. You do not have to worry about the permissions from the owners and do not have to think about any wear and tear. You can also have the potential for earning future passive income. Paying off a home loan to live debt free can bring you a comfortable retirement.
Owning a home is beneficial than living on rent
The following are the reasons why having a house is more advantageous than living on rent.
- Passive income
- Security
- No uncertainty
- No compromise
- Easy payment options
- Asset possession
- Investment
- Symbol of accomplishment
- No issues with owner
1. Passive Income
When you have your own house you have the option of earning passive income in the form of rent. If you are the owner of a couple of houses in high costly locations then you can earn high rental income. The income from house property rent will support you even after your retirement.
2. Security
When you are living in a rental property you have emotional security of your own space. After a day long work you can return to your home at any time at your convenience and comfort. Having your own house will remove the pressure and you can stay at ease and be yourself.
3. No uncertainty
Having a home will remove the fear and anxiety which is created due to the sudden termination of lease agreement by the landlord. There is no issue of renewing the rental agreement each year and you need not worry about the increase in rent every year.
4. No Compromise
Rent is a compulsory expense and after paying high rent and maintenance you have to compromise on various aspects if they are not provided such as amenities, location of your house and other facilities. When you have your own house you need not compromise on any amenities, you can arrange for anything you want. You can build your home at any location you prefer. If you have your own home you need not compromise on any aspect.
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5. Easy payment options
With the availability of easy finance options, you can buy your dream home. You need not wait till you accumulate money till your middle age for buying a dream home. You can buy a home in your 20s and be the owner of your home. There are various banks that provide finance facilities for the customers. You can choose a home loan in the UAE that provides you with the best interest rates and easy payment options.
6. Asset possession
Paying rent is a fixed expense and it is compulsory to live in the house. When you are paying monthly rent you are not possessing anything and it’s pure expense. When you buy a home you are in possession of an asset. Once you own a home, you need not worry about the monthly installments and rent payments.
7. Investment
When you are living in a city for a long period of time you feel the belongingness and you want to have your own house. When you buy a home it becomes an investment for you. You can earn from your investment. The home investment according to the location and property, the house value appreciates. Property prices increase over a period of time and you can get higher returns on investment. This is well apt for a country like UAE where real estate is one of the best businesses.
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8. Symbol of accomplishment
When you own a house you are in possession of an asset and it is a symbol of achievement. In high profile cities where the cost of living is very high, if you have your own house it is a great achievement. If you have your own house people it is a sense of pride and accomplishment.
9. No issues with owner
When you have your own home you are in possession of it. You need not worry about the landlord whether it is a minor repair or a major repair. When you are living in a rented house it is a stressful situation as you will have many issues with the house owner. Owners impose many restrictions on the tenants. The tenant has to depend on the owner for providing facilities like water, electricity, property security and maintenance and other facilities.
Take away
Buying a home is associated with high expense and if you are buying a home on finance then you should have a long term commitment. You can rent a home for a passive income. You will have an emotional connection with your home. Renting or buying a house decision is different from person to person and both have their own advantages and disadvantages. Buying a home or living on rent is a personal choice and everything is associated with the financial availability of an individual.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
