Home is one of the basic needs of every human being. As long as you live with your parents, home is not one of your priorities. But when you start working and come to live in a different city, you realise the importance of a home. When you leave your parent’s house, the first thing that you need is a place to live. You can either rent a house or buy one. Both have their own advantages and disadvantages.

Many people prefer to live in a rented house. A rented house gives you a sense of freedom. You might encounter a number of problems if you keep living at the same place for a very long time. Living with bad neighbours is very difficult. After some time, you may not like your locality. You may need to move to some other place because of your job or occupation. If you are a homeowner, you will have to sell off your house. But in case of a rented house, you can simply pack your stuff and move to a new place. A rented house allows you to pay a small amount of monthly rentals. This is more affordable than to buy a house by either paying a lump sum amount or taking out a home loan.

Buying a house has its own advantages. The biggest advantage is the ownership of the house. You do not own a rented house even after living in it for a number of years. You will feel that all your money that you have paid as monthly rentals has gone down the drain. When you buy a house using a home loan, you get tax benefit on your monthly repayments. With the rise in property prices, the value of your house will also appreciate and your personal net worth will increase.

Home loans are usually secured because lenders do not give large amounts of unsecured loans. If you fail to repay the loan, your house may be sold off by the lender to recover his money. Once you take out a home loan, you will be repaying it over a very long period of time. Therefore, you must be very cautious while taking out a home loan.