Why You Must Buy a House, Even if it Means Taking a Home Loan

A bank loan may be the only way you will ever be able to acquire a house, given the current high prices. You may feel set against loans since the interest amount can be quite high, especially if the loan is spread over a longer tenure. You may not want the stress of EMI repayments hanging over your head each month for the next ten to 15 years. All said and done, it is still worth the effort.

The current inflation rate is 7 to 8%. If you put your money in a savings account, you earn less and actually your money’s future value depreciates. Assuming you save the same amount as you would pay for the EMI, your future value will get you less. Property prices always appreciate, significantly beyond the inflation rate, and yield higher returns if you sell at the right time. Properties can also prove to be assets against which you can secure loans. The interest on home loans in India is 11%. The instalment and interest you pay are eligible for tax benefits and you can use online  tax saving tool for easy calculations. If you apply in joint names, both owners are eligible to claim deductions.  You calculate tax savings and the future projected value of your property and will find that it is one of the best ways to build appreciating assets.

You can rent out the property and earn almost