What Are The Advantages Of Housing Finance?
Opting for housing finance to buy your dream home has been known to be the best and fastest way, for the longest time now. However, most home loan borrowers are not aware of several other benefits of this facility in India. For starters, home loans provide a considerable amount of income tax exemption. Though the rules for IT exemption could vary each year, paying your EMIs would save you a major chunk of your income tax payments.
Housing finance in India has been made easy these days with simple step-by-step instructions available online. These directives allow customers to check their own house loan eligibility, to understand and complete the loan process efficiently, and to make easy and quick repayments through the online medium.
There are several professionals and businessmen around, who could advance their income considerably, these days. Housing loan companies in India understand that and provide accelerated repayment options that allows such professionals, businessmen and many others, to repay their loan quickly and minimize the amount of interest that needs to be paid over the period of 20 to 30 years.
This further enables home loan customers to pay their loan and interest much faster while also improving their credit status alongside. Most housing finance companies offer several customized options such as accelerated repayment, variable repayment and balloon repayment schemes, which prove to be extremely beneficial to professionals like doctors, CAs, lawyers, etc., who enjoy a considerable surge in their income over the years. These schemes also benefit businessmen, who earn sizeable profits after they break even in their businesses.
Though every borrower may not see it in this way, a strategically bought property would see considerable amount of capital gain over the years. A smart investor could buy a home with the help of a housing finance company and sell it later with a substantial amount of profit. One of the self made millionaires in America, Robert Kiyosaki, has referred to this kind of investment strategy in one of his famous books - Rich Dad Poor Dad.
Last but not the least, a home loan is the best way to convert your rent into your EMI and enjoy the privilege of owning a property. Most of us pay a considerable amount in the form of rent each month that doesn’t even add any value to the net worth. However, if you take a home loan, you can make repayments of a similar amount and own a property that is yours to live in, rent out or sell.
