7 best short term and long term benefits of buying a house

Home buying is a big financial decision andthe home acts as an asset. But new home buyers usually ask why a home is anasset? Should they look at it as a short term or as a long term benefit?

Covid times have definitely increased thevalue of a house in our lives and is now considered the safest place to keepour loved ones healthy & secure. This answer fits everyone’s circumstances– short term or long term benefits.

There is a constant debate happening betweenpeople. There are two sides to every coin and the same is the case with homebuying. One side agrees that buying a home and giving it for rental purposesyield long term benefits out of it. While the other side has a fear ofinvesting so much since they feel staying on rent is more beneficial. Here, wewill clear your doubt of looking at a home as a short term or a long termbenefit:

Benefits:

1.    Freedom –

Short Term Benefit – Some people who thinkthat staying on rent is freedom by not getting under home loan situation, isnot the right fact. The rentals usually increase on yearly basis and at theend, you’ll end up paying more without even owning your own home. So don’t lookat short term benefits.

Long Term Benefit – Owning a home is alwaysbetter. You can modify your house as per your wish. If you take a decent homeloan, the interest would be actually lesser than the rentals. You have thefreedom to keep your pets with you and need not to abide by any owner’s rules.The value of the property keeps on appreciating and will become a valuablephysical asset for you if in future you think of selling it.

2.   Taxation –

Short Term Benefit – If you’re staying onrent, you may not get levied from taxes when you’re paying the money to thehome-owner.

Long Term Benefit – Owning a home carries alot of advantages including taxes. At the same time, if you’re spendinganything on your home as an investment, you will get tax incentives as longterm benefits.

3.   Raising a family –

Short Term Benefit – A rented home isprobably not the best option for raising a family with children. You might haveto shift from one rented home to another due to numerous reasons which mightdisturb your family, children’s studies and others.

Long Term Benefit – Own home will provide alonger-term benefit. Your family won’t have to move from one home to anotherrental home. Your children can make their neighbours their friends for life.Your wife can design the interior and grow a mini-garden inside the house.Everything is actually much more stable and subtle if you simply own the place.

4.   Investment and Stability –

Short Term Benefit – Staying on rental homecan never help you in looking at real estate as an asset for you. You willconstantly be paying your monthly rentals. This will never bring stability toyour income in future.

Long Term Benefit – Once you buy a home, itstarts acting as an asset for you. While you pay the home loan EMI’s at buyingcost, the value of your home will keep on increasing. Since home buying bringsstability to one’s future by also adding up on your tangible assets.

5.   Future Options –

Short Term Benefit – Rented property willnever be considered as your own investment and this brings the fear of nothaving any tangible assets. There is no fixed future of settling down foranything permanent.

Long Term Benefit – Owning a home clears thefuture by having stability in your life. The foreseen future and emotion ofcoming back to one’s own home gives a feeling of security. And if one owns morethan one house, they can put it one on rental and get the rent on a monthlybasis while increasing the property value. This gives a clear future pictureand benefit of owning a home as a long term benefit.
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