Samma Keetsin
Director, Sena Development Public Company Limited

If you have a stable income that is sufficient and are at an age where you need to take responsibility for a family, or if you want to start a family or need long-term housing, owning your own home is the best option. It is a way to build wealth and stability in life more effectively than renting someone else's property.

There are several important reasons why "homeownership" is better than "renting".

First: The long-term costs of homeownership are lower than renting. In the long run, renting benefits only the landlord, while tenants are at a disadvantage. For example, if you pay rent of 10,000 baht per month, that amounts to 120,000 baht per year. If you continue this for 30 years, it totals 3.6 million baht, assuming the rent does not increase over those 30 years, which is unrealistic. Rent typically rises with inflation, meaning the total rent paid over that period will exceed 3.6 million baht. Additionally, if you have to move during that time, there will be costs for moving, new furniture, renovations, and more.

However, if you own your home, the value of the property will likely increase over the 30 years. For instance, comparing the price of newly built homes today to those built 30 years ago on the same size land and in the same location, prices may have increased several times. In areas like Chaeng Watthana, prices have risen more than tenfold over the past 30 years.

Second: Homeownership allows you to leverage other people's money (OPM). This means using a mortgage or borrowing from financial institutions to buy a home, which allows consumers to use less of their own cash. If home prices rise and consumers can sell, it results in profit, and the return on that small investment can be substantial. In contrast, when investing in the stock market or other assets, investors often cannot secure loans from financial institutions or can only obtain limited amounts.

Third: Homeownership provides tax benefits. Renters do not receive any tax deductions related to housing, but buyers who take out loans from financial institutions can fully benefit from deducting the interest paid on those loans from their taxable income.

In calculating annual income tax, the Revenue Department allows consumers to deduct interest paid on home loans from their taxable income, up to 100,000 baht per year.

Fourth: Homeownership encourages savings. Every time consumers pay their mortgage, they are gradually reducing their debt or saving to build equity for themselves. Thus, the longer you own a home and pay off the mortgage, the more equity you accumulate, which is a tangible form of saving for the future.

Therefore, if you are looking for long-term housing, buying a home is a better option than renting. However, you need to be prepared and do your homework on the property you intend to purchase. Choose to buy from reputable developers with a good image, social responsibility, and extensive experience in building and selling homes.