Advantages of availing a Home Loan
Well don’t you wish for a home that you can call your own and not depend on your parents? Also, if you are living on rent, wouldn't it be such a great idea to own your own home/apartment and not undergo anxiety and frustrations that are a part and parcel of paying monthly rents? The main problem here arises that property rates have been escalating on a daily basis, and sometimes it becomes too difficult to purchase a house with your own savings.
Hence, a home loan option is the perfect way to buy that dream house. A home loan generally has a long tenure and offers one with various benefits and advantages. A few of them are listed below:
An investment of a lifetime
Buying a home/house is one of the biggest investments one can make and therefore, there is a sense of accomplishment when one’s dreams come true. A home loan makes all that you dreamt of, possible.
Appreciation of capital
With the escalating property prices, capital appreciation is one of the best prospects one can expect if you avail a home loan. Rents and construction cost prices have escalated to no end due to inflation. Thus, an investment in a house is one of the best ways to keep the effects of inflation at bay.
This is long-term investment which can extend over 10 years, and during that tenure, there can be several ups and downs in the market. So when the market rates fall, you can rest assured that you can avail the benefit of the fallen rates.
On interest: According to section 24(b) of the Income Tax Act, the interest payable for the pre-construction period would be deducted in five instalments.
Principal repayment: According to sections 80C and 80 CCE of the Income Tax Act, the principal repayment on the home loan will be deducted from the gross total income.