Buying a home is an important milestone for many, but any aspiring homeowner might think twice before making a purchase once they look at the prices. Thankfully, the lack of funds is not a deterrent to purchasing a home anymore – banks and financial institutions understand this need and are allowing you to buy your dream house with a housing loan.
Thus, if financial constraints are the only thing stopping you from buying a house, then applying for a home loan is the best course of action to take. Doing so will enable you to buy the house you want and allow you to enjoy the following luxuries.
Enjoying numerous tax benefits
A home loan can allow you to save a total of Rs. 3.5 lakhs on the repayment amount, along with additional benefits if you’re buying a house for the first time. Under Section 80C, you can claim a tax deduction of up to Rs. 1.5 lakhs on the principal amount of the home loan. Section 24 provides you with a deduction of up to Rs. 2 lakhs on the interest paid. Finally, Section 80EE has a clause where you can enjoy further tax deductions if you’re purchasing a house for the first time – however, this is only applicable if your home loan amount is under Rs. 25 lakhs and the value of the property is under Rs. 40 lakhs.
An inevitable increase in long-term wealth
Buying a house might seem like a massive expense that will eat into your finances, especially given the somewhat volatile nature of the real estate market. However, this issue is negated if you consult experts in the field and make a calculated decision regarding your purchase. A home that you buy at this point in a good area will – more often than not – considerably increase in value in due time. Thus, a well-thought-out decision of buying a house is an excellent long-term investment that might improve your total wealth.
Enabling a sense of security
The primary reason why you’d want to purchase a home in the first place is to attain the satisfaction of having a property in your name. It’s a permanent residence that will quell any worries you might be having about your future. Getting married, raising a family, switching between jobs – any major event in your life becomes easier to deal with once you’ve bought a home.
The prospect of owning a house in on everyone’s mind, and banks and NBFCs provide people with tailor-made home loan offers to satisfy these requirements. This helps people overcome a massive financial hurdle and purchase a house. Availing tax benefits, improving long-term wealth, and enjoying a sense of stability – all these benefits can be enjoyed by buying a home.