Buying a new house has been one of the lifetime goals for many beyond the purpose. While owning a house for residing is a dream come true for plenty, investing in a new home is a way of investment for revenue gains for umpteen. House renting on the other hand may feel like flexible and less expensive initially compared to buying new home but comes with many disadvantages that you are paying for the space you utilize which is purely expenditure and never an investment. Despite being a huge investment and added responsibilities, buying a property has many advantages. You can easily buy a new house with home loan benefits if you face cash crunch. For many people, a new home involves spending their long-term savings and making adjustments in their spending patterns to make room for the periodic loan mortgage payment and it’s absolutely fine, because when you buy your own home you reclaim your lost freedom and sense of security which is more valuable than anything.
Such a committed investment requires home buyers to take cautious steps while building a house or buying real estate, depending on the type of home and fund allocation. On the other hand, renting a house make you feel confined and stressful with rental hikes and house owner rules. While buying a home from a reliable builder, nothing cashes in on like real estate, in the short and long terms, derives the pleasure of ownership along with freedom and less expenditure!
As per a study, the sales of residential properties in Chennai alone increased to 29% in 2022. (https://timesofindia.indiatimes.com/business/india-business/indias-top-7-cities-register-record-housing-sales-in-2022-at-nearly-3-65-lakh-units-anarock/articleshow/96539694.cms) The Indian real estate market shows a soaring demand for commercial and residential properties in FY2023 as most people see real estate as a golden investment opportunity compared to other modes. Despite financial squeeze, people are constantly investing in property to advantage from home loans with lesser down payment and tax deductions. Not only that! A piece of property when owned offers peace of mind, sense of security and financial stability and is better than any other purchase.
While you embrace yourself for a new house purchase, you should be aware of many things, including the advantages of buying a new home and downside of renting, which will allow you make better decisions in the home hunting journey.
10 Advantages of Buying a New House Construction over Renting
1. Brand New: The most beneficial thing about a new home is that it’s brand new. Everything is fresh and unaccustomed to a new home that offers the ultimate thrill and excitement. All the spaces and utilities are unused, waiting for you to have the privilege of unlocking their usage for the first time and you are not answerable to anyone about how you use the space as in rental house.
2. New Home Build Construction Vs Rental Homes in India
|
S. No |
New Construction Houses |
Renting a Home |
|
1 |
Modern and up to date
|
Outdated functionally, aesthetically
|
|
2 |
Built for your preference
|
Built with common preferences and may not suit your lifestyle
|
|
3 |
High value appreciation |
No ownership at any point of time
|
|
4 |
Has latest tech amenities |
May not have high-end amenities
|
|
5 |
Transparent Maintenance Practices |
No Visibility to Maintenance Expenses
|
|
6 |
Peaceful and luxurious |
Stressful living |
3. Personalization:
You can customize a brand new home to the needs and wants of yourself and your family members. Elements like partitions, window placements, and front elevation are your choice while searching a new home for sale near me and you can choose/upgrade the apartment based on the amenities you want to have when you live in your new home. Rental home neither offers any freedom nor any flexibility to customize the features and the usage of property restricted to a limit.
4. Low Maintenance:
When you buy a new home, everything is in sound and working condition, and you don’t have to anticipate any major maintenance and repair in the near future, which cuts back on house maintenance expenditure. But a rental property is utilized by many tenants before you occupy, since more wear and tear a rental home require more efforts and money for regular maintenance.
5. Energy Efficiency:
New homes abides the latest Govt. regulations on energy efficiency and you will know that green construction is “the thing” now if you search for “builders near me”, which means sustainable choices are made for the construction and sustainable practices are followed to minimize waste and pollution, and the new house is energy efficient in all aspects whereas a rental home is usually an old house utilized to make revenue out of rents. Hence, the builder not necessarily focuses on energy efficient features while building the rental apartments.
6. Luxury Living:
Today the homes are built not just to give space to stay but an ultimate living experience for the owners. The home builders essentially focus on offering a luxurious living implementing technology, unique services, an open layout, and common spaces, which are hard to find in old rental houses built sparingly as for business profitability and economic status of the owner at the time of construction.
7. Cost Efficiency:
Building a new house offers the flexibility of adjusting the ongoing costs by planning the features accordingly. The buyers can leverage from low down payment for home loan while purchasing the house and it provides the flexibility to drop expensive ideas and implement new plans during construction to reduce costs. Once you sign a rental agreement there is nothing to save from the regular fixed cost for using the space which may rise with time but never goes down.
8. Home Loan Interest Rates in India in 2023
|
Banks (Home loan) |
Interest Rates |
|
Kotak Mahindra Bank |
8.85% |
|
Union Bank of India |
7.90% |
|
SBI Bank |
8.50% |
|
Axis Bank |
8.75% |
|
ICICI |
9.25% |
|
Punjab National Bank |
8.5% |
|
Federal Bank |
7.65% |
Disclaimer: Interest rates based on data taken from the websites as on 27 April 2023. Other charges and fees not included in the table. Actual applicable interest rates may vary based on factors like credit score and loan applicant category.
9. An Investment with returns:
Buying a property offers the ultimate comfort in the financial front. With growing monetary value for the capital and tax savings on home loan EMIs, a new residential real estate purchase in India offers the best returns for your investment in a short time and help build wealth in the long term. Families prefer to buy their own home to reduce their monthly expenses which drains from rent and maintenance cost charged by the owners.
10. A home is For Generations:
A new home is not just a place of residence but generational wealth passed to your kids and then to theirs, which is premium not just for its monetary value but the memories you make as a family in the asset for generations to come, which is not plausible for a rented house.
Key Points
Ø Buying new build construction house is more advantageous than renting a house for several reasons. A new home is part of financial investment for wealth accumulation while renting a home for living is cost expenditure with no returns.
Ø Contrary to the popular belief that renting a home is less expensive, these days buying a home gives extra savings along with peaceful living. The home rent rates in the metros are unstable that the home owners raise the rent as and when they wish.
Ø You can customize when you purchase property that suits your lifestyle requirements but with a rental house you need to compromise certain features as it doesn’t offer the flexibility of a new home.
Ø A new home cost only very less for maintenance whereas a rental house needs frequent maintenance.
Ø Buying your own home is advantageous as it offers long-term value appreciation and instant passive income after the purchase for many generations in the future while offering a luxury living cost-efficiently with easy EMIs and tax benefits in the present!