Home Loan is a safe bet for people who look for little extra money or people who can save the money slowly to get their accommodation. Nowadays finding a home loan to meet one’s requirement is very easy. Lots of online and offline ways are available to get the same without much trouble. The interest rates provided recent days are very attractive for the buyers. Days are gone where buyers come with bulk money and purchase the home at discounted prices. Smart investment is that one can go for a property that can be paid in installments through bank home loan. This will assist in reducing the tax liability also.
Before finalizing the properties for purchase, a good bank shall be approached to check if the property is approved for providing loan against that. In case to buy residential properties from big builders the developers would have got bracket approvals. The concerned banks can be approached and loans will be granted based on the papers provided by the builder. In intention to provide homes for each and every resident, the government of India has subsidy for the home loans taken till certain amount. The government through this scheme has extended sense of accomplishment feeling to many Indians. This is because this was dream for many and now it is coming true. Adding a big investment like home is never possible for a middle income person without the assistance of home loan
The home loans might extend to tenure up to 25 or 30 years, investors need not get worried about the duration. The property appreciation will make it up for all the pain and hassle. The civic developments like sewage, gas connection, network upgrade also increases the price of properties. Factors like connectivity to metro rail, broadening of roads, and accessibility to public transport are key for property price escalation of an area. Average appreciation of apartments in metro cities like Mumbai, Delhi, Bangalore, Chennai etc is close to 15% annually. New home loan borrowers will get will normally less interest rates than people with old home loans. One bank will take up the loans from other banks and provide comparatively less loan interest rate and high loan amount to attract customers.
Tax benefits shall be availed in both interest and principal repayments. House that are given for rental will cover up the EMI to be paid.