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We all want a place of our own, a place where we can relax in peace with our family.Buying a house is a big investment and an even bigger cumbersome process. But everyone is under pressure to buy a house. This article has a list of articles related to buying, owning and selling House. Before buying a house, On home loan MCLR Base Rate etc. On Home Loans, On Taxes that one has to pay while living in the house, Taxes one has to pay on selling the house

Before buying a house

Things to consider before Buying the house

  • Don’t buy if you aren’t absolutely sure that you want to be there long term
  • House costs money more than just buying the house
  • Renting the house if you don’t use it
  • Tax Benefits and Home Loan : Owning a home offers tax advantages by way of interest payment, principal repayment as well as capital gains.
  • House  for now or for future
  • House always appreciates
  • House is Illiquid

It’s impossible to say renting or buying is a better decision because each one of these factors (and more) depends on your unique situation. You have to consider where you live, what kind of house you’re looking for, how much you pay in rent, how much you’ll pay in the future…the list goes on and on.  The image below shows the result of Buy Vs Rent calculator from You can Buy vs Rent Calculator by clicking here.

Calculator for Buy vs Rent

Calculator for Buy vs Rent

Factors favoring Buying House Factors favoring Renting a House
Stability: While renting, you are always bothered about rental increases or when your landlord may decide to sell the house. If you stay in your own house, you don’t have to worry about such issues.


Flexibility  While buying a house gives stability, renting offers flexibility. These days many people move to different cities/countries every 2-3 years to explore better job prospects. If your time horizon is short-term and if you are unsure of the city you want to settle in, renting is a better option.


Making Improvements  When you own a house, you can fix up your bathrooms the way you want, build a modular kitchen and paint your walls orange or yellow if you like. While if you stay in a rented house, you have to comply with all conditions imposed by the landlord. No Commitment :When you rent a house, you can move out of the house by giving just a month’s notice whereas if you have to move out of your owned house either by renting out the house or by selling the house, it requires much more effort, time and money.
Forced Savings: When you decide to buy a home, first you force yourself to save for the high downpayment and then you indirectly save when you pay off the home loan. Low Transaction Costs: Buying and selling a house has high transaction costs that include Registration charges, Stamp duty charges and Brokerage Fees. To recover these costs you have to stay a minimum number of years in your owned house. In case of renting, transaction costs are limited to rental brokerage which becomes negligible if you stay for 2-3 years in the same house.


Capital Appreciation:Real Estate price will keep on increasing Low Monthly Outgo Monthly outgo in renting is much lower compared to buying where you have to also pay for the Home Loan EMI. In an uncertain economy when jobs are at risk, it is better to stay on rent.

Renting a House

House Rent Allowance or HRA is given by the employer to the employee to meet the expenses of rent of the accommodation which the employee has taken for his residential purpose. To claim HRA you need to submit PAN number of your house owner, Lease agreement and receipts to your landlord.

Home Loan

Taking a home loan is a mammoth task, especially with all the paperwork and cumbersome legal formalities involved

Home Loan Process Buying a house

Home Loan Process

Taxes on when you own a house

When you buy a home, you pay for loan interest, property taxes, insurance, and even maintenance and repair costs.

You also have to report it as Income from House Property while filing ITR

Income Tax on the House when you own it

Income Tax on the House when you own it

When you sell the house

Tax implications of selling a property. Like most other earnings when you sell your house, you are liable to pay tax. As Real estate is regarded as an asset, so the profit from its sale is also assessed under the head ‘Capital gains’ . This section covers Computation of capital gains, Computation of capital gains for Real Estate or Property, What is Long Term Capital Gain, how to calculate it with examples. It expands on tax benefits, When can tax benefits taken on prinicipal repayment and interest payment be reversed, how can one claim exemption on tax by investing in another property under section 54, 54F, 54EC of income tax or by putting in Capital Gain Account Scheme (CGAS). How to determine Holding Period of property?

In Budget 2017,Finance Minister Arun Jaitely has proposed to change the base year to calculate the indexation benefit from 1981 to 2001 in the budget.  The change in the base year is across all asset classes but the impact would differ across assets that enjoy indexation benefit on long-term capital gains—real estate, unlisted shares, gold and bond funds



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