In the long run, buying a house as early as you can definitely is a better of the options, as you not only build an asset, but it also appreciates in value. Nevertheless, no option can be considered as the ultimate and perfect option. When it comes to financial planning a practical evaluation of options on the basis of individual needs is what counts.

What is the monthly outflow
* Renting a home - Payment of Monthly Rent
* If you own a home - EMI + Maintenance Costs

Compare the two outflows
* Evaluate on the basis of your income and the other debts about how you would service it.

Risk Analysis
* What are the risks of buying a home? (property value not appreciating)
* Renting a home. (not creating an asset)

The investment angle
* Buying a home - How much do you expect the property to appreciate? Would it meet your financial goal? compare.
* Renting a home - How much can you save and invest to meet your financial goal.

You must have a holistic approach in your decision making process, considering all factors, such as your lifestyle, job and personal preferences. Where ownership comes with a lot of responsibility, renting could be cumbersome too. Thus weigh the pros and cons of each side practically. The tax impact on both the options is more or less similar. Where you save tax on EMIs paid, you save tax on HRA, when rent is paid. From a financial viewpoint, either decision must be integrated into your financial plan to ensure that you do not derail the other goals of life.

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