Bangalore: Everything in life comes with options. On a few occasions, one option will stand out from the rest for various reasons. At times the situation is to complex in nature to handle. It's no doubt that times are tough at the moment when you are deciding on life's basic necessities "shelter". Buying and renting has become equally complicated. With RBI increasing the interest rates by 50 basis points it gets difficult to choose between renting and buying a home. Plus the renting houses is gaining momentum in movement in metros and tier II cities attracting a large number of developers. This is the reason for the hike in rates for renting apartment. Prithvi is a 30 year old Charted Accountant works with a reputed accountancy firm and brings home a salary of 1,00,000 per month. He is living with his family in a rented flat that costs him 25,000 per month. Till a few years back, buying a house was a distant dream for him. But the falling property prices and attractive home loan rates have given him a new hope. He is contemplating of buying the same flat which is currently fetching a price of 70 lakh. He can even use his savings of Rs 15 lakh as down payment. He has two options before him, "To continue living on rent" or "To buy a house". If you are trapped in the same dilemma like Prithvi, the most useful thing you can do is take a step back and take a peek into the advantages and disadvantages of renting and buying before looking at your own financial situation. This will help you clear the clutter in your mind in terms of buying or renting home. Renting The advantage of renting a home is that 1.You don't have the debt burden of owing a big mortgage to the bank. 2.Anytime rent is cheaper than repaying a mortgage. 3.And when you rent you have more disposable income at your side. 4.You don't have to face take the trouble of any repairs that is to be made, because the owner take care of it. You just to pay your rent and bills on time. Cons Every coin has two sides to it. Similarly there are certain setbacks you will face on renting a house. 1.Rent money is 'dead money'. You are effectively contributing towards the landlord's mortgage and paying off his asset. 2.You cannot stop the landlord from increasing the rent. You lose extra money again on his asset. And you could be asked to vacate for any number of reasons. 3.This is not your permanent place. So it makes no financial sense to paint a bedroom, re-tile the bathroom. Buying Pros 1.Your monthly mortgage is paying off your own asset. Your regular payments work as a type of compulsory savings plan so, over time, you are building 'equity' which is an ownership interest in your house. 2.You can borrow against this equity, after a few years or, alternatively, convert it to cash by selling the house. 3.You can keep mortgage repayments steady with the right home loan and avoid unpredictable rent increases. 4.You have a secure roof. Good bye to nomadic life when you had to shift between houses. 5.It's your own house and you have the complete liberty to decorate it the way you wish to. You can paint, renovate, at any time without having to seek permission. 6.Houses generally increase in value over time. As a long term investment, property can provide an excellent return. 7. Once your mortgage is paid off in full, there are no further repayments. Cons 1.You owe a big debt to the bank. 2.Most of your disposable income will go towards repaying the mortgage. 3.As when the interest-rate differ, you will suffer. If they go up, you will be paying more.