Advantages of owing a home

Owning your own home provides a sense of security, builds equity, provides stability and is an asset you can fall back on in times of need

FISCAL ISSUES
As the average age of a home buyer keeps reducing, it would seem easier to buy property at present, because of 'value for money' prices and tax benefits that come with purchasing your own home.

APPRECIATION
International trends suggest that real estate gives an 8-10 per cent annual return. Therefore, appreciation is guaranteed over a period of time.

ALTERING, MAINTENANCE
Owning your own home gives you a free hand to make alterations in the property. You are also not dependent on the landlord to maintain the property.

HOME LOANS
The rate of mortgage interests ie., the interest charged by the housing finance company on home loans is still at affordable levels, and this has made owning a house a reality for the middle class.

INCOME TAX
The Income Tax Act provides for deduction on interest payable on capital borrowed for acquisition or construction of a property. For most of us, such tax concessions make sense to own a home by availing a housing loan.

RENT vs OWN
House rent is usually about 20-25 percent of your monthly income as compared to the 35-40 per cent that goes towards EMI. However, the annual tax saving on EMI means that the actual figure comes down to roughly 30 percent of your monthly income.