Buying a home is more than a financial decision in India. It’s more of an emotional decision. Exorbitant rents, landlord oppression and packing and moving every once a year, the woes of the renter are many. With sky-rocketing property prices, it isn’t possible to pay out of pocket for a brand, new home. If you plan to save enough money before you buy a property, then you lose out on the benefits of staying on your property during the prime of your life.
Housing Finance – Making Property Dreams Come True for All
This is where home loans play a crucial role by helping several Indians realise and fulfil their property dreams. Home loans have narrowed the gap between prospective home owners and their dream property.
Buying a property without availing housing finance is next to impossible in metros and upcoming residential areas. Without a home loan, you may be forced to settle for a smaller house in a locality that wasn’t your number one choice.
- Take a look at the benefits of a housing finance in making your property dreams come true.Capital Appreciation
Usually, an investment on a property yields high Return on Investment (ROI) as compared to other form of savings/investments.
Irrespective of the price you pay for your property today, it will increase in value a lot more in the future.
Apart from the prices of property, rental costs have also grown steadily. Even if you already own a place, you can consider availing a home loan to invest in a second home that will earn you revenue in the form of rent for years to come.
- By the time you finish your housing loan, your home will be worth double the cost price. This protects you against inflation, and you also have the choice of selling it at a much higher rateImproved Credit Status
Once you gain complete ownership of your property or have paid more than 50% of your loan, you can even take other loans against your home. Your property acts as an expensive asset for you, thereby improving your credit status at financial institutions.
While it’s true that a home is the biggest investment in the life of an individual, over time, it also becomes your biggest asset.
Owning a home improves your chances of securing a loan against property and several other types of loans.
- Boosts your Credit Score
When you pay your home loan EMIs regularly, your credit score increases. This is because home loans are considered as good debts, and it reflects that you can handle debts efficiently and on time and thereby improves your repayment credentials.
- Experts verify your Property
When you apply for a housing finance, verification experts visit the site, meet the constructors and confirm all the details and documentation about the property. They ensure that the property is free from all legal tangles and disputes.
This works in your favour as it ensures that your investment is a safe and secure one. Also, it saves you time, energy and money on doing the background checks by yourself.
- Tax Benefits
This is one of the biggest advantages in availing a home loan. You can avail deductions on the Principal Repayment under Section 80C of the Income Tax Act (ITA). Also, you can avail deductions for the Interest under Section 24(b) of the ITA.
Owning a home provides you with several other benefits like you have complete control and freedom to remodel/design your property according to your wishes. Similarly, you can even rent it, thereby providing you with a steady stream of income.
It’s an investment that is an asset in the long run. So, stop waiting for the right time, go ahead and avail a home loan today to buy the home you’ve always wanted.
Govt of India has launched, ‘housing for all by 2022’. There is an interest subsidy on home loans under Pradhan Mantri Awas Yojana.
Owning a home has always remained the most precious dream. To accomplish this dream, you need financial help from a lending institution. Let’s check out how housing finance can help you buy your own home.