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How is Home Loan Better than Renting a House?

When it comes to finding the right accommodation, you need to look at options that are good for you in the long-term. The questions that often come to mind when deciding on a home are – would renting a house be a better option than buying one? Do I really want to take a home loan?

People who advocate that renting a place is a far better option than owning a home haven’t really considered the long-time benefits that come with owning your own space. Moreover, it also comes with a load of benefits and freedom that is not available in a rented home. Owning a home is a dream for every Indian, but the soaring property rates in recent times have made it difficult, leading many to opt for a home rental rather than buying a house.

Advantages of Home Ownership Over House Rentals   

Home ownership is always a good and smart option. Some of the advantages are as follows:

Pride and Security

Owning your own home gives you a feeling of security and pride which is not possible in a rented home. When you have a home that belongs to you, you know that your future is secured. The same thing cannot be said about a rental house.

No Increasing Rentals

When you rent a home you’re always faced with the problem of increasing house rentals that can be quite frustrating, since you do not have a fixed amount that you would pay for a longer period. With home loans, you not only get an option to buy your own house, but also plan your finances well for the future.

Financial Stability

When you buy your own house with a loan, you are aware of the EMI that is required to be paid over the long run. Hence, your future expenses and costs are more stable and predictable.

No Hassles of Shifting

With your own home you do not have to worry about shifting from one place to another due to increasing rent or eviction notice from the owner. These are just a few examples out of several others that can make your everyday life difficult. But, with your own home you do not have to bother about any of this. You can even furnish and style your home the way you like since you know that you’re going to be living in the same place for a longer time or probably for the rest of your life.


With your own space you have more privacy and less interference in your life, which a rented home doesn’t give you. Moreover, rented spaces also come with a lot of conditions and rules for tenants which sometimes may seem quite difficult to maintain and keep.

How Home Loans Have Made it Easier to Buy Homes

Here are some of the reasons why home loans have made it easier to buy homes.

  • Buying a home for oneself is a far-fetched dream for many because most people do not have the money or enough cash available to put into a home ownership. This is why you can choose to go for home loans, as it gives lower and middle class people an opportunity to fulfil a dream of buying their own house.
  • Since home loans are secured loans they come with lower interest rates.
  • With home loans you can take a loan depending on your requirement.
  • Home loans come with a maximum tenure period of 30 years.
  • You can get tax benefits on home loan which is a very good advantage for many.
  • You can also go for home loan balance transfer as well.
  • You can use a home loan EMI calculator to understand how much you pay on a monthly basis.

There is absolutely no doubt that prices for owning a house have boomed in the past years. However, investment in a home is always a smart and safe decision because land value increases every year, so it’s better to make a decision today than waiting for the prices to touch the sky tomorrow.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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