Buying Property Is A Good Deal, But It Would Not Happen In A Day. Here Is What To Expect

After a really long day at work, home is indeed the only place where you want to be. When it comes to buying a property in India, people usually make this decision in their thirties when, due to growing residential needs, this becomes a priority. While it is one dream that you and I wish to fulfill, finances often come in the way.

Since it's a major financial decision, it's good to assess the benefits before you make this investment. Here are a few pointers: 

It would not happen in a day

Buying a home is often financially exhausting. Our ancestors have always known it. When you invest in a home earlier in your life, handling it might be difficult. Ensure that you do not completely exhaust your finances. Stay within your budget and do not risk everything you have on your home.

Your equity will rise gradually

Most home buyers take a mortgage loan while buying a home. Every month, you will have to pay back your mortgage loan in equated monthly installments (EMIs). So, invest in your home like in any other equity. If the interest on your home loan is calculated on a monthly reducing basis, the principal for which you pay interest reduces every month when you pay the EMI. The greater the EMI, the greater the reduction and the greater will be your increase in equity. As time passes, your assets will increase.

You can claim tax deductions on property tax

Home buyers enjoy many special privileges, unlike ordinary tax payers. In most countries, property tax is deductible from income tax payment. In India, property tax is deductible from rental income.  

You can also claim tax deductions on interest payment

It is not just that you can deduct property tax payment against your rental income. You can claim tax deductions on your mortgage interest payment. In India, the government allows a deduction of about Rs 2 lakh from the interest payment on your home loan. If your female partner is a co-owner of your home, both can claim tax deductions on the interest payment.

It is a saving plan

When you pay back the mortgage loan, home equity increases proportionately. This acts as a saving plan that the mortgage payment schedule imposes on you.

Avoid being a tenant

Owning a home is better than renting. If you stay in rented apartments for long, your payment toward rental expenses would be comparable to the EMIs you make while paying off your home loan. All things considered, it is much better to buy because in the long run, renting is costlier than buying a house. 

Yet, buying a home is not purely a financial decision. Buy a home that matches your needs and specifications. Even if everything fails to impress you, being the proud owner of your own home would not.