Home buying is a big\nfinancial decision and the home acts as an asset. But new home buyers usually\nask why a home is an asset? Should they look at it as a short term or as a long\nterm benefit?<\/p>
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Covid times have\ndefinitely increased the value of a house in our lives and is now considered\nthe safest place to keep our loved ones healthy & secure. This answer fits\neveryone\u2019s circumstances \u2013 short term or long term benefits.<\/p>
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There is a constant\ndebate happening between people. There are two sides to every coin and the same\nis the case with home buying. One side agrees that buying a home and giving it\nfor rental purposes yield long term benefits out of it. While the other side\nhas a fear of investing so much since they feel staying on rent is more\nbeneficial. Here, we will clear your doubt of looking at a home as a short term\nor a long term benefit:<\/p>
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Benefits:<\/strong><\/p> 1. Freedom \u2013<\/strong><\/p>\n\n\n\n Short Term Benefit –\nSome people who think that staying on rent is freedom by not getting under home\nloan situation, is not the right fact. The rentals usually increase on yearly\nbasis and at the end, you\u2019ll end up paying more without even owning your own\nhome. So don\u2019t look at short term benefits.<\/p> Long Term Benefit \u2013\nOwning a home is always better. You can modify your house as per your wish. If\nyou take a decent home loan, the interest would be actually lesser than the\nrentals. You have the freedom to keep your pets with you and need not to abide\nby any owner\u2019s rules. The value of the property keeps on appreciating and will\nbecome a valuable physical asset for you if in future you think of selling it.<\/p> 2. Taxation \u2013<\/strong><\/p>\n\n\n\n Short Term Benefit \u2013\nIf you\u2019re staying on rent, you may not get levied from taxes when you\u2019re paying\nthe money to the home-owner.<\/p> Long Term Benefit \u2013\nOwning a home carries a lot of advantages including taxes. At the same time, if\nyou\u2019re spending anything on your home as an investment, you will get tax\nincentives as long term benefits.<\/p> 3. Raising a\nfamily \u2013<\/strong><\/p>\n\n\n\n Short Term Benefit \u2013\nA rented home is probably not the best option for raising a family with\nchildren. You might have to shift from one rented home to another due to\nnumerous reasons which might disturb your family, children\u2019s studies and\nothers.<\/p> Long Term Benefit \u2013\nOwn home will provide a longer-term benefit. Your family won\u2019t have to move\nfrom one home to another rental home. Your children can make their neighbours\ntheir friends for life. Your wife can design the interior and grow a\nmini-garden inside the house. Everything is actually much more stable and\nsubtle if you simply own the place.<\/p>
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