Paying rent than owning is usually not a great idea but if we cannot afford something, we have to pay rent and have it. Many people would like to purchase a house for their own needs. Still, unfortunately, they may not have enough funds and ultimately end up renting a property than buying any property. There are both advantages and disadvantages in purchasing a property. I wouldn't say that it is the brightest investment opportunity but at the same time, it is also not something that can be ignored.
I remember one of the advantages of purchasing a house instead of paying the rent. In some places, the rent that can be given to a house is something that can be used as an EMI to a house instead. If you get such an option, I would recommend going for that. The main reason is that if you pay rent, you fill someone else's pockets. If you pay the same amount as EMI, you may not have claimed the house fully by paying the loan but you might have saved a lot of money which otherwise would have gone to rentals.
They can move anywhere
For people who don't have their own house, there is a good amount of flexibility. They can have a very simple life where they can reduce the quantity of items they have and live a simple life. Another advantage that these people get is that they can travel anywhere and live anywhere. When people get attached to a house, it is hard to get detached. They won't get the thought to move anywhere else. This happens to any attachment as we are all humans.
During the start of our career, maybe we might as well have some attachment towards having our own house, and even at a later point in life, we might have the feeling of living in our own house with all the comforts but in-between the two traveling to multiple places can be of interest and not having a house will help towards that.
They wait for their dream home
Some people have the thought that they shouldn't be buying any house with haste. Many people want to build or purchase a dream home. It can take years to decide what type of house they want or what they want inside the house but it is a slow process that has to be started at some point.
I personally want to build my dream house but it can take a lot of time to build my dream home. I decided to purchase a property in the meantime as it can take a lot of time to build a dream home. Now that my investment is done, I can continue to gather thoughts on how my dream home should look like.
Other investments give better income
Mutual funds are expected to give better income compared to other investments and especially real estate investment. That's one of the strongest reasons why people stay away from purchasing a house and instead willing to pay rent.
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