Renting can be defined as an agreement where a payment is made by the tenant to the owner for the temporary use of goods, services and property. It can be made for both residential and commercial use. The owner may be allowed to take tax deductions such as mortgage, depreciation and interest.
Renting is as an agreement where a payment is made by the tenant to the owner for the temporary use of goods, services and property. It is made for both residential and commercial use where the owner may be allowed to take tax deductions such as mortgage, depreciation and interest.
Buying can be defined as acquiring a property by making a one-time payment or taking a home loan and transferring the ownership from the seller to buyer. Buying allows exchanging of all the rights and responsibilities of the property from the seller to the buyer.
Living on a rent or buying a property totally depends upon the affordability of an individual. If one can afford, they can buy a property or else they can stay on a rent. Buying a home requires a huge chunk of money whereas in staying on rent they require very less amount of money as compared to buying. But buying is a one-time payment whereas on rent, the tenant has to pay a certain amount of money decided by the owner every month and its get incremented every year. Home loans can be taken at the time of buying a property where the bank provides the loan to an individual after looking at the financial position of an individual who has a steady job and can pay the instalments on time whereas there is no such policy of taking the loan on renting. Buying can make the new owner do anything with the property, one has full right over the property whereas, on rent, the tenant doesn’t own that property, they are just using it for a temporary period. Therefore, the tenant has to take permission from the owner before doing anything to the property.
Buying is a permanent process whereas renting is a temporary process. If an individual owns a property, and he/she wants to take some other loan, then he/she can keep the owned house as a mortgage and can get a loan from bank by showing all the documents of the owned house whereas if the one is staying on rent, he/she can’t get by showing the house where they are staying on rent to the bank. Buying a property will make the one to use it as a permanent address whereas on rent, the individual will have it as a floated or fluctuating address. While staying on a rent, if the owner is not satisfied or happy with the tenant or having some issue, the owner have the right to tell the tenant to move out of the property whereas on buying a property, there is no such issue of getting kicked out, as the one will be the owner himself. If the individual buys a house, then his/her name gets registered on land & revenue department, municipality and electricity board, whereas on staying on rent, their names don’t get registered. The owner collects the electricity bill from every tenant and then pay it to the electricity board.
The tenant is always exempted from paying any tax while on buying a property, the owner has to pay all the taxes to the government. If one buys an individual house, he/she have full right on both the house as well as the land on which the house is standing and he/she also have the right to extend their property upwards on that area if they want by taking permission from the government. But the flat owners have only right over those limited square feet and they cannot extend their property on any side as the ownership of the complete buildings are divided between the different flat owners staying there. But on staying on rent, the one doesn’t get any facility mentioned above.
Therefore, from the above, it is seen that the property discussion about the renting or buying can go very long. It both have advantages and disadvantages of their own. So, it's their personal choice according to the ability and wants to stay on a rent or to buy a home.