You usually take a property loan for either buying a plot of land or house/flat. Two primary reasons for taking a property loan are: To deduct some taxes and to avail the advantages of a lower rate of interest. However, apart from these, there could be many other reasons for availing a property loan. So, let’ get started.
When you Want to Decide Your Own Repayment Schedules
Property loans lasts for longest period of time, generally exceed till 10 years. This means, keeping the long tenor in mind, you can arrange your repayment in a suitable manner. You can also go for closing your loan before its tenor by prepaying the endure debt. Although, your lender may impose prepayment charges, based on the terms of your agreement.
When You are Eagerly Searching for Tax Benefits
By having a property loan, you become entitled for tax benefits that can protect some of your cash. Based on section 80C of the Income Tax Act, 1961, any primary repayments up to INR 1 lakh are tax deductible every year. Although, this rule is relevant only for residential property owners. Additionally, you can also look for tax deductions on the interest payments you make, confined to a highest of INR 1.5 lakh per annum. This is the second reason why you should go for property loan instead of trying to break your own bank for purchasing Property in Meerut road.
When you Want to Choose Interest Rate That Suits You
A property loan comes with two things either it would be a fixed interest rate or a floating interest rate. A floating interest rate alters according to the persuading marketing conditions. A fixed interest rate, on the other hand, sets at a specific figure and doesn’t change while taking the loan. Based on your needs, you can select between a floating- rate loan or a fixed- rate loan.
When you are Seeking for Capital Appreciation
Decided by the request for quality housing in India, a real estate investment can become little remunerative for you in the long run. Construction as well as rent costs are rising these days, and this trend will continue in the coming years.
When you have Poor Financial Condition
As you know, loans for Affordable flats in Ghaziabad are best when you are facing major financial loss. By taking property loan, buying house or plot becomes much easier and then according to your convenience, you can pay it back.
Hence, regardless of the reason behind a property loan, one should realize its importance and should treat it with full respect as it deserves.