Human beings are most intelligent beings on earth. Humans have created a whole different world of luxuries, facilities and provisions through various discoveries and inventions. Our world has become easier and faster. Property investment in Manchester is very good option and dealers provide you best property in Manchester. We can buy anything and everything as we want with invention of money and strong banking system.
Buying a new house is not a tedious task anymore thanks to home loan facilities by banks. One just has to go to a bank open an account and follow the bank procedure. You may say that one can buy directly and with one time payment. No doubt it is an easier method and gives a sense of accomplishment but home loans give several other benefits too. Some of them are :-
1. Low interest rate: – The interest rates are usually low and the total amount won’t be much higher then the current price. Besides the rate changes with changes in economy and this can be very useful to save money.
2.Tax Benefit: Interest paid :- a deduction of up to Rs. 1.5 lakh is allowed according to Section 24 (b) of the 1961 income tax act on home loan or on constructing a new house property. (it is reduced to Rs. 30,000 for loans taken earlier than March 01, 1999).
2. Tax Benefit: Principal:-
Rs 1 lakh repayment of principal on your home loan is allowed as deduction from gross total income if all prescribed conditions are fulfilled. This is according to Sections 80 along with 80 CCE of Income Tax Act 1961.
4. Capital Appreciation: – Property bought today will be much more expensive and worthy in future because of capital appreciation. A simple example – if I buy apartments or flat today of 1 crore, after an year or two, it would at least cost 1.5 -2 crore even if its not in any urban or highly developed area. This is because of inflation and rise in population.
5 Renting vs. home loan: – one should compare the rent and the home loan before deciding to buy a house. Let’s take an example. Ram and shyam are both new to Mumbai and have recently shifted. Ram takes home loan of 70 lakhs of which he pays 20 lakh as down payment. On the other hand, Shyam takes a house on rent. His rent is 30000 and he has to pay at least one lakh as deposit. So every month shyam pays 30000 as rent while ram pays 28000 installments plus 2000 interest. His payment is same as shyam but after some years. He will own that house of 70 lakh which would be costing at least 1 crore or more then while after the same time Shyam would have spent same amount of money or even higher if the landlord increases rent with rise in market prices. Both spend same amount of money per month but at the end Ram has his own house while Shyam has simply spent the money as rent. Ram has served his basic need plus he also does a future investment whereas Shyam has only spent money for shelter in that period.
Thus, a home loan serves multiple aims and proves a better option to accomplish the need of shelter then the traditional method of paying one time money. A home loan is a multi purpose investment and gives all round benefits to the taker. So go to your nearest trusted bank and fulfill your dream by taking a home loan today!
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