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Q.

Is it better to buy a home on loan or stay on rent?

Asked by gyani, 05 Sep '08 08:44 am
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Answers (109)

1.

Hi Gyani,

It is like this:

Even a small flat in even a small town costs around 25 Lakhs. You take a loan @ 12.5% and keep paying @28403.51 for 20 years Plus taxes Plus maintenance etc etc. You have a choice to hire the same house for less than 10k on rent (minus the hassels of maintenance and taxes). You may own a house and feel happy that the house's worth is increasing by the day. But the value is just notional since you do not sell the house.

Assume that you keep the 25 lakhs in FD in a bank that gives you @10.5% currently, that amounts to an interest of 21875 PM less taxes if you do not invest wisely.

You may rent a house, but there is hassel of moving out every now and then.

So make your choice yourself considering all these aspects.
Answered by Anand YNI, 06 Sep '08 07:14 pm

 
  
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2.

It depend on your age. your work and availability of money with you beside loan.if you are young.working in GOVT office ans some funds are available with needed for under hand transaction etc,then better go for a flat.Otherwise stay in rented house or if gove house is available go for some ploy instead house.
Answered by goyal goyal, 06 Sep '08 08:41 pm

 
  
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3.

Stay on rent. shift and keep shifting as you keep getting better paying jobs. make a house at a place you intend to settle down. INSTEAD OF BUYING A HOUSE, MAINTAIN YOUR CAR WELL.
Answered by VIJAY PARANDEKAR, 07 Sep '08 05:39 pm

 
  
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4.

Better you buy new home on loan because u able to pay your rent money on load and u have your own home.

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Answered by reya, 25 Dec '09 08:51 pm

 
  
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5.

Yeah it is better to stay on rent instead of taking loans bcoz if u take loan u have to pay double with intrest
Answered by tafseer rizvi, 08 Sep '08 05:48 pm

 
  
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6.

Its better to buy a home on loan
Answered by sandeep bhapkar, 08 Sep '08 05:33 pm

 
  
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7.

One u repay the instalments, another u pay rent. If u can compromise on the comforts provided by rented house and afford for construction of own house, though smaller it may be, you earn the appreciation of the market value of land and building and repay a bit more than the rent for some period of time, therafter less than the rent and finally no payment except building and land taxes
Answered by ANA KULANGARA SUJAYA, 08 Sep '08 05:23 pm

 
  
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8.

This question is meaningless, as it does not have sufficient data of the buyer.
i. whether the buyer needs a house to own?
ii. whether the buyer already has a house?
iii. whether the buyer is posted to work away from hometown?
All these aspects are to be known if one wants to live in a rented house or not.
Answered by victor, 08 Sep '08 04:58 pm

 
  
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9.

Its better to take a home on loan
because our home is different than home on rent
Answered by niraj, 08 Sep '08 10:17 am

 
  
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10.

Good Q After a long time.. I am also observing all Answers of this Q
Answered by Rajesss, 08 Sep '08 10:05 am

 
  
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