Should you Buy or Rent a house in 2021?

Buying a house is everyone’s dream, whether it’s a small farmer or a big business tycoon; each and everyone wants a roof of their own. But the irony is, not everyone can afford it. It’s not a small investment; buying a house may drain all your hard money in just a moment; although it’s a fixed asset and a long-term investment, it may trap you in a net of liquid crunch.

Jumping in a pool without knowing swimming is always dangerous. You need to see the depth of the water and measure your capabilities and circumstances before diving into it.

Purchasing a house may be one of the most significant possessions of your life, but it’s not one you need to hurry.

Before getting considerable about the property, here are specific vital things to make sure you’ve done. Here are six of them, according to real estate experts.

1.Thorough financial planning: Buying a house will pull a massive amount of money. So, before owning a house property, one needs to analyze his financial transactions properly; for example, if someone is going to register for a house and taking a loan for that, what is the EMI one has to pay, how much down payment he had to bear.

2.Scrutinize your savings: Properly analyzing your savings will tell you how much to borrow and how much to spend from your savings. Borrowing too much is not at all a good idea. As we all know, the future and uncertainty go hand in hand. Freezing huge cash without any savings may put you into financial distress. So, always take a calculative risk.

3.Stick to your budget: It includes everything; owning a house has many hidden costs involved like maintenance costs, Utilities, property tax, and home insurance. Evaluate all these factors and think about whether you can afford all these at this present moment or overburden yourself. Down payment should include a significant portion of the house. If we consider the thumb rule, it should consist of 20% of the total cost as lower down payment can lead to longer mortgage issues.

4.Make a separate financial fund for this big budget: We often save for our retirement, for any emergency and child’s education, and some people put these savings into buying the home, and uncertainty strikes, they end up selling the house at a meager price.

5.Check your credit score: A good credit score helps you get a good amount from the bank and are always on a positive side of a negotiation. One can gain a higher credit score by avoiding excessive use of credit, repaying the loans at a time, or prepaying loans with surplus funds.

6.Know the 36/28 rule: People should not spend more than 36% of their gross income on total debt. And not more than 28% of your gross income should go towards the mortgage payment.

6.Dont follow the sheep herd blindly: many people buy a house by just getting influenced, esteem-related issues, getting jealous, or competing with peers. It’s not necessary at all. Just because your friend bought a house doesn’t mean you also need to run on the same race track. Control your emotions to take over you. Check the reality chart before landing into reality.


Spending money is always a tricky game, so before playing the game and converting your hard money into a fixed asset, make sure you have done all your homework properly. Once you invested in a property, the funds will get stuck, and it is difficult to come out of it. So consider the above factors which will help you to evaluate your financial status before buying or renting a house.



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