One more point that I want to tell you about getting a home loan is this:
Assume you buy a house worth Rs. 25,00,000/- YOu make a down payment of Rs. 5,00,000/- and take a loan of Rs. 20,00,000/- Your emi would be about Rs. 19,000 p.m. on a 15 year loan
You do not pay tax for this 19,000/-
Also, at the end of 15 years, the house (which is now more valuable) belongs to you and disposing it off earns you a great profit. Even otherwise, it remains an asset where you can stay without paying rent or you can earn a handsome rent out of it.
Re: home loan
by Ashwin Rath on Mar 18, 2009 05:44 PM Permalink
Yes. Your are right. A house is almost NEVER a burder / liability. However you need to be sure when to buy one.
