Property rates are at a hike and investing in a real estate property without a home-loan becomes difficult and rare. With a plethora of home loan options available, buying a house has become increasingly convenient. Have a look at the benefits associated with it:
1. Dream come true
Buying a home is probably the biggest materialistic asset we own in our lifetime. Besides the sentimental value attached to owning a home, it also financially garners high returns on of the most prized possession. Home-loans help give wings to our dreams and own a place we can call our home.
2. Rate of inflation
With the inflation being experienced in the past few years, the prices of the owned properties have also shot up. Even the rents have gone up and thus, it benefits the owners of the house who wish to sell or rent out their homes while the people on a look-out for houses can invest in home-buying premium homes with the help of desired home-loans.
3. Diminishing rate of interest
Over the span of a few years, chances of your property rates going up and down are quite common. To save you from the harsh downfall and in order to avoid bearing the brunt of any diminishing value, home-loans offers support and benefits which help you sail smoothly even when there is a depreciation in the property rates.
4. Tax Benefit
As per Section 24(b) of the Income Tax Act, 1961, a deduction of up to INR 1.5 lakh towards the total interest payable on the home loan towards the purchase of house property can be claimed while computing the income from house property. Also, as per the newly introduced Sections 80C read with section 80CCE of the Income Tax Act, 1961, the principal repayment of up to INR 1 lakh on your home loan is allowed as a deduction from the gross total income.
5. Diligence of property ownership
Before lending the amount, lenders carefully observe the papers. The real estate property papers are dutifully verified of all legalities. The loan is then granted to the owner. Buying a property in an approved project by the Banks/ NBFC’s save a lot of time spent on the credit appraisal. Also, the original property papers kept in Banks/ NBFC’s acts as a locker where the borrower is free from any hassle of losing them.
6. Actual market value of the property is determined
Valuations of the property are done by certified Independent valuers. A clearance is mandatory to estimate the market value of the property based on maintenance, age, level of construction, built-up area, quality, locality etc. are factors referred by the banks. This gives the borrower a clear picture the value of the house and helps in better decision making.
7. Current Payment Plans in Real Estate
Currently, we see a spurt in Subvention Payment Plans, wherein post 10% contribution by customers, the remaining payment is made by the bank on behalf of customers. This has helped the end-user buy Real Estate sector requirements in this region.
