There is a lot of debate that goes around on whether buying a house is a wise decision. Then it tries to conclude if you should buy a house - one way or the other.
Having gone through all the struggle myself, ultimately buying a humble flat - I think the question is not if but when. If you are going to live long enough, there is going to be a time when you would want to secure a place from where no one could throw you out.
Reasons Not to Buy a House
There are a few good reasons that you may not want to buy a house as yet... Here are the few that I can think of:
You know better alternatives to invest.
Thank you for reading this article, but it's not for you.
You are acting out of expectations from others
Your elders are nagging you to buy a property because someone else they has done it. But you don't want to. Or there are some oversmart people around you not to do that. You are not able to make the decision.
Well don't make a decision just because someone else is asking you to make it. As I said it before, the question is when? Please read through this article, I would be happy if you are able to decide on the right time in your life to make the decision.
You don't want to settle down
You are a free spirit. You want to travel aound the country. Why just the country -- you want to travel around the word. You want to grab all the best career opportunities that you can get anywhere on top of this planet (and may be beyond... :) )
I get it. This may be a good reason for some people -- if you are one of them then enjoy your life.
Unfortunately, it's not so for most people. Unless your employer/business is taking care of your housing up to your needs, you will want to get out of the trouble of making arrangements yourselves every few months.
In India finding a perfect property on rent is not easy in the first place. Not unless you are ready to pay a hefty sum each month. Then, shifting from one place to another costs as well. Damages during shifting are common.
Finally most people would want to settle down to one place eventually, that means having a house there. You can buy a property, and rent it. Sell it before it gets too old and buy little bigger house without paying taxes on the gain (that's legal in India). In the meantime you can be at any place where you want to be.
You can save taxes on rent
Yes, that is an argument and it's somewhat funny. First, saving tax on rent you pay is practically much more difficult in India. Not many house owners are prepared to make government registered agreement because of the hassles involved. Since in most cases house owners don't pay taxes on the rent they receive, they would ask for the payment in cash without receipts. Otherwise they won't share their PAN and bank statements. The government does not want to loose tax money from the most honest tax payers - salaried people. So they put strict restrictions on your employer to ask for those proofs for allowing the tax advantage on rent - which you can't come up with.
Second, paying rent is not an investment - it's expense. Granted, that you get a place to live in. But mind that it's temporary. The tax break on rent is a relief not an advantage. It is only useful if the rent you are paying is significantly lower than the EMI that you would need to pay if you buy the same property. That's practically never the case. As house owners want a good return in terms of rent, that equation never goes out of balance. Rents are always high if property valuation is high.