Taking loan is not that beneficial as the article suggests. No bank gives loan at the cost of our deposits. It is always 2%, atleast, more than the deposit rate. So, we stand to loose the 2% or more right there. But the buyer gets some benefits of taking a loan (instead of investing hard cash) if he/she smartly invests some amount to beat the inflation and borrowing rate. This could be investing in additional land/plot purchase where the appreciation could be better than the loan borrowed, or invest in MFs/equities whose maturity can be utilized to short-close the loan and become the real owner of the house.
RE:Is taking loan a benefit?
by Amitabh Akolkar on Jun 02, 2007 01:34 PM Permalink
2%? u cannot afford that 2% interest when price of your house will increase by at least 10% a year?
RE:Is taking loan a benefit?
by MOHITE SAN on Jun 02, 2007 03:58 PM Permalink
My cousins name is also Amitab akolkar and he is in london are you the same.
RE:Is taking loan a benefit?
by Upadrasta PardhaSaradhi on Jun 01, 2007 06:33 PM Permalink
its all depends on personal choices. Seeing the way the House rents are increased , you will get a new your own house if you r ready to pay a bit more than what you pay for rented house.
for ex, in hyderabad , if we have to take a rented house nearer to the HitechCity, IT Hub, the house rents are about 11000 to 15000 per Month. If you can afford a bit more 2 to 3 % as EMI, you can take a good House may be a bit far, but you tend to pay arround 15000 - 20000 as EMI for one month, but still its your house and its your own house.
