While buying a home can fulfill your long-lost dream or your family's long-lost dream of owning a house, renting is seen as a better option in today's world. Let's look at the difference between buying and renting by first breaking down the basics. Buying a property means taking out a hefty loan, liquidating assets, or making a full upfront payment for owning your property, along with the legal charges and processing fees that come with it. The party has full ownership and legal rights over the property, which also gives them the right to sell it, rent it, and furnish it. Whereas a tenant who lives on a rental property is someone who is not bound by those rules; they do not own the property but instead pay a small lump sum before starting to reside on the property, thereby paying monthly tenancy charges to the original owner who bought the property, also known as the 'landlord'. Still not clear on which proposition you should pick, and why should renting be at the top of your list? We will break it down into 10 deal-breakers. Let's go through them one by one, shall we?

7 Reasons Why renting is better than buying:

Relocation made easy:

Relocating to a different locality with a new environment, new neighbors, and, well, new property can be a challenging task for anybody. It may even seem overwhelming to most of us, but relocation with proper planning and scheduling becomes even easier when all you have to do is pay your lease agreement for six months or one year and go head first into hunting for another rental property. It's more flexible for the individual to frequent more properties and look for the most affordable options in the city that they reside in, but for somebody who has full ownership over the house, leading to a long term commitment with the property, it may be additionally difficult to move to another locality due to personal, financial, or professional reasons for why they bought the house in the first place.

Little to no maintenance fees:

You've always heard your parents complain about how the paint is chipping off, how they should buy new curtains for your home, or how the electric switches have started malfunctioning after years of usage. Guess what? By being a tenant, you will pay no maintenance charges. You heard that right 0, nil, nothing, nada! In fact, you are the boss here. While residing in the property after submitting your lease agreement, if you find that there's something wrong with your bathroom pipes, there's something wrong with your walls; maybe they're leaking; maybe your home needs a thorough pest control cleaning; maybe your owner has not disclosed those parts of the house to you. You can instruct them to redress your grievances asap!

Low Payment Costs:

Let us break it down; payment costs seem too vague when we put it this way. The costs that you, as a tenant, pay are way lower than the costs that the owner has paid in the past while buying the property. Tenants pay brokerage fees and security deposits, the latter of which is usually three times the cost of your monthly rent, and renter's insurance if you are supposed to pay one according to your agreement. But if you give us the honor of collaboration, We at Jugyah will surely be the most efficient mediators, who will not only focus on helping you buy an affordable house near you but will also make sure you get full transparency on your landlords and the house that you reside in.

Zero Property Tax:

What is a Property Tax ? A property tax is a crucial factor in helping governments fund local infrastructure. Local governments or municipal councils, particularly in India, levy property taxes on properties that are bought by homeowners. When determining property taxes, the assessed value of the property, represented by the xyz sum, will be subject to a specific percentage, which the owner must pay annually or semi-annually. The frequency of payment depends on factors such as the property's size and the tax laws applicable in the state or locality. But, with your superpower, if the property is rented, as a tenant you will have to pay. Yes, you guessed it correctly again. Zero charges on property tax—nothing, yet again.

Long term commitments—what's that?

Imagine you have bought a lush house near your locality. Buying it while property prices are soaring isn't easy. You have taken out a loan for 15 years, and suddenly your world turns upside down with your work location shifting to another locality? Gosh, what a conundrum—in your pocket and in your life! We can think of innumerable scenarios where buying a house without thinking about ALL the future prospects can land you in murky waters. But you can save all this hassle if you opt for rented properties. No attachments, no mistakes, only adept shifting!

No Real Estate Risks:

The Real Estate market is like the sea—no, really, hear me out it sways to its own rhythm, is meekly predictable, and well appreciates or depreciates involving a bazillion other factors you have no control over. You have to look over your shoulder for appreciation or depreciation of your assets day in and day out to know whether you are operating at a loss or profit. But, with renting, it makes your task all the more easy to not worry and live stress free time on your lease agreement.

Liquidating and funneling your funds elsewhere:

The real estate market, if it appreciates, is a real gem to invest in, not gonna lie. But a good chunk of us often prefer to divulge and take a different route instead of investing all our money in a single asset. Why not invest some of it in Mutual funds, some of it in the stock market, some of it in term deposits, and some of it in bonds issued by the government? A single financial alternative may not be functional for everyone, but it may just be operational for them at the moment.