Everyone wishes for a happy ending to their home-buying journey. But lack of funds often plays the spoilsport. Added to this is the skyrocketing price of property across the country. But this is where a home loan comes to your rescue. Property purchase in a big city like Hyderabad is indeed an investment.
For example, Mahindra Ashvita in Hyderabad offers luxurious homes at attractive prices. To get a home loan, you can approach major banks and non-banking financial companies (NBFCs). You can also check out Bajaj homes and loans to get a customised loan for your dream home.
As home loans fall under the secured loan category, they have a low interest rate compared with unsecured loans. Hence, many people opt for a home loan when buying a house. And if you do not know already, home loans come with a host of other benefits.
Here are a few reasons why you should opt for a home loan:
# Gain from capital appreciation: In the past few years, property prices have risen immensely. This surge in price means your property will be worth a lot more after a few years. The construction costs of property rise by about 20% every year.
This is one of the main reasons for the steady rise in the price of property. People living in rented houses know how the monthly rent increases every year. Thus, the price of a new house may seem very large right now, but it is set to be double or more after you have paid off the loan.
Bachelors relocating to a city like Bangalore could invest in a small apartment such as a 1 BHK in Hyderabad and say goodbye to rented accommodations. Rest assured that this investment will fetch you more than you are paying for it now. For those planning to make an investment in real estate, Hyderabad will be an excellent choice. This is because of the growth and development of the property sector in the city.
# Low interest rates:Nowadays, almost all banks and NBFCs like Bajaj Housing Finance offer attractive interest rates. So, you can choose the best home loan according to your affordability.
As already mentioned, a home loan comes with a much lower interest rate than any other type of loan does. But it is better to compare the rates across lenders before you seal the deal.
# Helps build a strong financial portfolio: To be eligible for a home loan, you need to have a good credit history. And there is nothing better than a mortgage loan to build a solid credit portfolio. Paying your equated monthly instalments (EMIs) on time helps to increase your credit score.
By building a strong credit history over the years, you will be able to create a good impression as a borrower. This repayment history will enhance your credit score and make you a financially responsible borrower.
# Tax benefits: One of the major benefits of availing yourself of a home loan is that you enjoy a tax holiday.A home loan has two parts—the principal loan amount and the interest on the borrowed amount.
Under Section 80C of the Income Tax Act, you can claim a deduction of up to Rs.1.5 lakh from your total taxable income in a year. It is for the repayment of the principal or the borrowed amount. And if you have a co-applicant in the loan, both of you can file for deductions separately.
Section 24 of the Income Tax Act allows you to enjoy tax benefits on the interest repayment. The upper ceiling for deduction is Rs.2 lakh. Claims for the interest payment come under this section.
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