Home Loan Benefits for Ready to Move in Property
Buying a home is one of the most crucial decisions in life. It gives one a greater sense of accomplishment. Today, with a callous boom in the property rates and a wide variety of available options for luxury homes in the real estate markets, home-buyers have started to traverse through not just one but many decisions. Which, furthermore, has made the decision to buy a home, tough through savings solely. Now, a large number of families rely on home loans to make easy payments. They depend on the collaborations of real estate giants with trusted banks and the durability of the loans while buying a dream home.
Almost all home-buyers have to avail a home loan.
A home loan offers plenty of unseen benefits. Apart from helping you grab a chance to own your dream house, a home loan comes with several tax and interest benefits.
Still wondering how? Read along to find out the key benefits of availing a home loan while purchasing your dream ready-to-move-in property.
Home Loan Benefits for Ready to Move in Property
Avail Tax Benefits on Home Loan
The Union Budget came up with exciting news in 2020 that proposed to increase the income tax benefits to over Rs. 1.5 lakhs, on interest payments of home loans. Further, helping home buyers gain flexibility in avail deduction of over Rs. 3.5 Lakh. Available under Section 80EEA, the deduction makes up for offering income tax benefits of over Rs. 1.5 Lakh on the home loan paid interests.
Making it more affordable for home buyers, the Government of India has extended several benefits as these with a plan to relieve borrowers. Three primary sections of the Income Tax Act offer tax rebate on a home loan. The Sections in the IT Act include Section 80C, Section 24, and Section 80EE.
|Sections in the IT Act||Nature of Home Loan (Based on Deduction in IT)||Eligible Conditions||Maximum Deductible Amount|
|Section 80C||Tax deductions on the principal repayment from your taxable income||Should include stamp duty and registration charges claimed only once||Rs. 1.5 Lakh|
|Section 24||Tax deductions on the payable interest amount||Applicable only on the property with construction finished in 5 years. If not, only up to Rs. 30,000 allowed||Rs. 2 Lakh|
|Section 80EE||Additional home loan interest tax benefit for first-time home buyers||Home Loan amount should not be over Rs. 35 Lakh The value of the property is obligated to be within Rs. 50 Lakh||Rs. 50,000|
Reduced GST Rates
Goods and Services Tax, abbreviated as GST for home purchasers has also been decreased recently. Based on current trends, The GST rates levied on all current purchases has been reduced to 5% for residential homes and ready-to-move properties. Purchasing a ready to move home today will offer you the benefit of these low rates.
Lower Interest Rates
With interest rates drastically moving downward, home loans are quickly becoming more affordable. As low-interest rates result in lower EMIs, home loans become easier on the pocket. As the interest goes down, home-buyers benefit because they will have to pay out a lesser amount of interest while repaying the loan to the bank.
Lesser Property Prices
Apart from being a tax-saving instrument, home loans reap benefits for homebuyers with the buying price for their dream property. Today, homebuyers have plenty of options for affordable and luxurious ready to move in properties. With the help of home loans, homebuyers can enjoy the benefits of buying a home paying a small down payment and availing greater tax benefits. A home loan can also be easily paid at a tenure of up to 30 years.
Exclusive Opportunity to Grow Your Fund
Even if you have adequate funds to buy a home for yourself, try to avail of a home loan and build your funds. How?
By saving taxes! You can easily invest your funds to save on your taxes and eventually, build your capital.
Using a pretty simple example, consider you have a home loan at an 8% rate of interest. Suppose, the total amount of interest on your home loan is close to Rs. 3.5 lakh, you can easily exhaust the deduction available to all homebuyers under Section 80EEA and 24. This also means that, if you fall under the tax bracket of 30%, you can easily save on your tax up to Rs. 1.05 lakh.
Benefit of Liquidity
Facing a liquidity crunch is the worst situation of all. The worst situation that follows is the requirement to take the help of a personal or collateral loan. A quick of advice! Do not ever put yourself in the misery of higher interest rates with a personal loan.
A home loan offers lower interest rates, helps you protect your existing funds, and lets you breathe when uncertainty hits. Hence, use your funds to protect against risks in life and use the funds to satisfy other financial goals. Take a home loan for your ready to move property and keep your funds safe for bad times.
A home loan whenever managed well can become one of the biggest realizers of dreams. A home loan specifically becomes a huge benefit, as it comes along with so many benefits. Beginning from tax benefits to savings and a longer repayment tenure; a home loan answers all prayers.
Take your first step towards buying a dream home. Now is a good time to make the decision!