5 reasons to know if home-buying is a short term or long term asset.

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Home buying is a bigfinancial decision and the home acts as an asset. But new home buyers usuallyask why a home is an asset? Should they look at it as a short term or as a longterm benefit?

Covid times havedefinitely increased the value of a house in our lives and is now consideredthe safest place to keep our loved ones healthy & secure. This answer fitseveryone’s circumstances – short term or long term benefits.

There is a constantdebate happening between people. There are two sides to every coin and the sameis the case with home buying. One side agrees that buying a home and giving itfor rental purposes yield long term benefits out of it. While the other sidehas a fear of investing so much since they feel staying on rent is morebeneficial. Here, we will clear your doubt of looking at a home as a short termor a long term benefit:


1.    Freedom –

Short Term Benefit –Some people who think that staying on rent is freedom by not getting under homeloan situation, is not the right fact. The rentals usually increase on yearlybasis and at the end, you’ll end up paying more without even owning your ownhome. So don’t look at short term benefits.

Long Term Benefit –Owning a home is always better. You can modify your house as per your wish. Ifyou take a decent home loan, the interest would be actually lesser than therentals. You have the freedom to keep your pets with you and need not to abideby any owner’s rules. The value of the property keeps on appreciating and willbecome a valuable physical asset for you if in future you think of selling it.

2.   Taxation –

Short Term Benefit –If you’re staying on rent, you may not get levied from taxes when you’re payingthe money to the home-owner.

Long Term Benefit –Owning a home carries a lot of advantages including taxes. At the same time, ifyou’re spending anything on your home as an investment, you will get taxincentives as long term benefits.

3.   Raising afamily –

Short Term Benefit –A rented home is probably not the best option for raising a family withchildren. You might have to shift from one rented home to another due tonumerous reasons which might disturb your family, children’s studies andothers.

Long Term Benefit –Own home will provide a longer-term benefit. Your family won’t have to movefrom one home to another rental home. Your children can make their neighbourstheir friends for life. Your wife can design the interior and grow amini-garden inside the house. Everything is actually much more stable andsubtle if you simply own the place.

4.   Investmentand Stability –

Short Term Benefit –Staying on rental home can never help you in looking at real estate as an assetfor you. You will constantly be paying your monthly rentals. This will neverbring stability to your income in future.

Long Term Benefit –Once you buy a home, it starts acting as an asset for you. While you pay thehome loan EMI’s at buying cost, the value of your home will keep on increasing.Since home buying brings stability to one’s future by also adding up on yourtangible assets.

5.   FutureOptions –

Short Term Benefit –Rented property will never be considered as your own investment and this bringsthe fear of not having any tangible assets. There is no fixed future ofsettling down for anything permanent.

Long Term Benefit – Owning a home clears the future by having stability in your life. The foreseen future and emotion of coming back to one’s own home gives a feeling of security. And if one owns more than one house, they can put it one on rental and get the rent on a monthly basis while increasing the property value. This gives a clear future picture and benefit of owning a home as a long term benefit.
Now don’t waste your time and invest in your future with Ashiana Sehar and get higher rental returns while appreciating your property value at the same time. Enquire today

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About The Author

Ashiana, Ashiana Housing build homes. Homes surrounded by vast green spaces and fresh breeze. Homes cocooned in secured gated complexes. Homes where futures are forged and there are opportunities to grow. And Homes in environments brimming with healthy activity, trust and respect. At heart, we build communities with care.

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