You probably heard your parents say that a home is the best investment that you will ever make, as it will secure your future as well as that of your family’s. In today’s economy, an easy way to buy a home is through a home loan. Many reputed financial institutions like Bajaj Finserv offer Online Home Loans.

An average loan tenure is usually between 10 to 25 years and would prove to be a smart investment in the long run. On the surface, it’s easy to see the benefits of investing in a house. It eliminates the need to pay rent every month, which would also benefit your finances in the long run.

Is a Home an Investment?

With escalating real estate prices, it’s always a better option to buy a home as an investment. Buying a home to use as your primary residence is a good investment because you are the owner and occupier of it. Buying a home and then renting it out to others too could prove beneficial. Given the volatile nature of real estate, you should know when to invest in a house. When you do decide to invest in a house you could explore schemes offered by financial service providers like Bajaj Finserv to get a Home Loan that meets all your requirements.

The Pros of Owning a House

Buying a home is a huge commitment to make and there are questions you must ask yourself before you make your decision. How will paying off the home loan affect your finances? Weigh up the pros and cons of buying your own property.

Here are the advantages of investing in a house.

Increasing Value

Investing in a home, sooner rather than later, is a good financial investment as property values are only appreciating.

Tax Deductions

Sections 24 and 80C of the Income Tax Act of India ensures you enjoy tax deduction on your interest rates and primary amount for home loans. This is beneficial in the long run as you will be eligible for a deduction once you’ve paid off your loan.

Sense of Accomplishment

Buying your own house will give you a huge sense of accomplishment once you’ve paid off all that you owe. You can live comfortably in your own home and take pride in your ownership. It also gives you better ties with your community and you will have more freedom and privacy than in a rented house.

The Cons of Buying a Home

Home ownership can be tricky. It is important that you that you analyse all the risks and benefits of taking a home loan before you make a binding decision.

Large Liability

Buying a home is long-term financial commitment. The cost of interest on a home loan charged by some lenders, alone could keep you on edge for years. Getting a home loan also requires a down payment and closing costs. The charges on home loans are also generally higher than rent, so that can cause a shortage of funds.

Home value might decrease

There are times when property values decrease drastically, which can negatively impact your financial standing. The truth is, real estate is a gamble, and you cannot expect a surge in the value of land in your initial years of ownership.


Maintaining your home also adds to your overall expenditures. Whether you want to renovate your home or fix any problems, like painting the house or fixing the plumbing, it will cost you.

Whether a home is an asset or a liability, would depend completely upon your current as well as your future financial situation.

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