4 Reasons Why Buying A Home Using Home Loans Will Help You Save Money

Edited by "Neetika Bajaj" |  The Property Show on NDTV  |  May 10, 2017

Home Loan, Housing Loan, Housing Finance, Tax Benefits, Real Estate, Buying A Home,
These tax benefits make buying a home using a loan an attractive proposition.

Zeroed in on the apartment or villa you want to buy? A home loan comes right after.  And even if you have enough savings stashed in to perhaps buy a home outright, you really shouldn't. A home loan today comes at 9.5% rate of interest. Inflation measured through consumer price index is at around 6%. Now add all the tax benefits which this copy is all about and what you really pay as real interest to the home loan company is about 1-2%. So take your savings, put them in a good mutual fund, and make a beeline for a home loan.  

Here are the 4 tax benefits that make the math of taking a home loan so compelling

1) Section 24 of Income Tax Act: Homeowners can claim deduction of up to Rs.2 lakhs on the interest they pay annually on their home loan. There are 3 conditions which need to be met 

a) The loan must have been taken either for purchase or construction of a new property.

b) The loan must have been taken on or after 1 April, 1999, and

c) The purchase or construction must be completed within 3 years from the end of the financial year in which the loan was taken.

What happens if the property is not ready in 3 years, which is more common than rare in India! In this scenario, the aggregated interest will be allowed deduction in five successive financial years, starting from the year in which the acquisition/construction was completed.

This benefit is available to everyone, whether you live in the house or don't.  But if the property is rented out, there's an additional benefit. Your entire interest on the home loan becomes deductible giving you a huge tax edge.  

2)  Then come section 80C of the Income Tax Act: You can deduct the principal amount if the apartment or house if self-occupied. Total deduction with a ceiling of Rs 1.5 lakh is allowed for such payments under the overall limit available under Section 8OC. Stamp duty, registration charges and other expenses related directly to the transfer are also deductible under this section, subject to a maximum deduction amount of Rs.1,50,000. You should claim these expenses in the same year you buy property in.

The law does make an exemption and allows deduction in case your city of employment is different from where you have bought the property in,  

3) Also know about the Section 80EEE of Income Tax Act: This deduction has been recently added and is available only for first time homebuyers provided 

a) The cost of property does not exceed Rs 50 lakh while maximum home loan is Rs 35 lakhs 

b) Home loan must be sanctioned between April'16 to March'17 

c) No other property should be owned by the tax payer on the date loan is sanctioned

This deduction is made be available from Financial Year 2016-17 onwards.

Both resident and NRIs are eligible to claim this benefit. 

4) And the best part: If you buy the property along with your partner, spouse, or parent, joint owners who are also co-borrowers can claim the above benefits separately. Hence, double the benefit. But the important point to note is that you may have jointly taken the loan but if you are not a co-owner in the property, then you cannot claim these tax benefits.

Buying A HomeHome loanHousing FinanceHousing Loanreal estateTax Benefits

2,240 thoughts on “4 Reasons Why Buying A Home Using Home Loans Will Help You Save Money”

  1. Wrong sentence:This benefit is available to everyone, whether you live in the house or don't.  But if the property is rented out, there's an additional benefit. Your entire interest on the home loan becomes deductible giving you a huge tax edge.   

    Reply

  2. Incorrect information. Check last statement of point 1)"Your entire interest on the home loan becomes deductible giving you a huge tax edge." There have been recent amendments capping this amount to 2 lakhs only.

    Reply

  3. What about property under construction? all these benefits does not stand valid until you have property under posession!!!

    Reply

  4. According to me, In the current scenario going in for a home loan is a bad choice for most of the people. Even if you go in for a home loan kindly please make sure you dont add any co-applicant in your loan for sure. Since it reduces the borrowing eligibility for both of them as the entire EMI is treated as your liability unless it is really necessary to go in for a joint loan. Also banks have a very bad practice of asking for a co-applicant by saying it is mandatory make sure you dont do so. Currently your interest claim is capped at 2 lakhs per year, hence going in for a home loan does not make much of sense. According to my approximation if your interest rate is 8.5% or so in a 20 years loan you almost end up paying double the amount you have borrowed imagine how much you would end up paying for a 30 year loan. in any home loan your capital will start reducing only after 7 years of EMI repayment. So anytime if you plan to preclose your loan. you will end up paying more.Hence going in for home loan to save on tax is a bad idea. you prevent tax and end up paying banks. The indian government earlier made all banks as nationalised banks to server the public. Now it is the opposite there is no banks in india is trying to serve the people.If you have saved enough for buying a house use that money instead of going in for a loan, unless you are sure that the property will appreciate more than 100% in a span of 5 years.

    Reply

    1. What a piece of crap you are writing and then even negating your points by saying" unless you are sure that the property will appreciate more than 100% in a span of 5 years. " Prices of property in india double like anything and they way we are expanding and destroying are agricultural alnd there will be appreciation of property all the more and taking a loan of 25 lakhs for 30 years doesnt mean you have to pay for thirty years you idiot you can pay off as soon as you want and any property bought 5 years back for 15 lakh is nearly worth 30-35 lakhs in cureent scenarion so who is at loss tell me?

      Reply

  5. Title of the article is misleading. When you take any loan, you pay it back in interest which if the duration is longer then can be as much as double the principle amount. The saving money part is not logical if you pay substencial amount of interest. All you get to save is few thousand bucks per year which depends on your tax slab.

    Reply

  6. Considering Claudio Ranieri has seldom changed his Leicester side since finding the winning formula, Jeffrey Schlupp’s inclusion’s against Swansea was something of a statement. Jeffrey Schlupp is an ex-Manchester United trialist giving Leicester’s Premier League title bid extra gas with his youthful power

    Reply

  9. Hmm it looks like your website ate my first comment (it was extremely long) so I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog blogger but I’m still new to everything. Do you have any suggestions for rookie blog writers? I’d really appreciate it.

    Reply

  10. Hmm it appears like your site ate my first comment (it was super long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog blogger but I’m still new to the whole thing. Do you have any tips for newbie blog writers? I’d certainly appreciate it.

    Reply

  11. Hello there, You have done a fantastic job. I will certainly digg it and personally recommend to my friends. I am sure they’ll be benefited from this website.

    Reply

  13. hello!,I really like your writing very a lot! share we be in contact more about your article on AOL? I require a specialist on this area to resolve my problem. Maybe that’s you! Looking ahead to look you.

    Reply

  14. I need to to thank you for this great read!! I certainly enjoyed every little bit of it. I have got you saved as a favorite to check out new things you post…

    Reply

  17. I blog often and I genuinely thank you for your content. This great article has really peaked my interest. I am going to book mark your site and keep checking for new details about once per week. I subscribed to your Feed too.

    Reply

  18. Thanks for the tips you are revealing on this site. Another thing I want to say is always that getting hold of some copies of your credit history in order to inspect accuracy of each and every detail could be the first motion you have to undertake in credit restoration. You are looking to clear your credit file from harmful details flaws that spoil your credit score.

    Reply

  19. An impressive share! I’ve just forwarded this onto a friend who had been doing a little research on this. And he in fact ordered me dinner because I discovered it for him… lol. So allow me to reword this…. Thanks for the meal!! But yeah, thanks for spending some time to discuss this matter here on your blog.

    Reply

  43. It is the best time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I desire to suggest you some interesting things or suggestions. Perhaps you can write next articles referring to this article. I desire to read even more things about it!

    Reply

  64. I’m impressed, I have to admit. Genuinely rarely should i encounter a weblog that’s both educative and entertaining, and let me tell you, you may have hit the nail about the head. Your idea is outstanding; the problem is an element that insufficient persons are speaking intelligently about. I am delighted we came across this during my look for something with this.

    Reply

  83. What’s Happening i’m new to this, I stumbled upon this I have found It positively useful and it has helped me out loads. I hope to contribute & help other users like its helped me. Great job.

    Reply

  112. I truly wanted to make a brief remark to be able to say thanks to you for all the marvelous tips and hints you are giving out on this site. My particularly long internet investigation has now been paid with useful suggestions to write about with my colleagues. I ‘d assume that many of us website visitors actually are rather lucky to exist in a superb website with many wonderful individuals with good principles. I feel extremely lucky to have seen your entire site and look forward to tons of more cool minutes reading here. Thanks a lot once more for all the details. cheap viagra online

    Reply

  116. I want to switch to a clean new WordPress theme for a site, but Google has indexed 2500 pages from the old site (mainly due to a calendar module creating a new page for each day). How do I ensure all those pages remain accessible for Google, without throwing up a “Page Not Found” when someone tries to access it after installing the new WordPress theme. The current site is content managed and is running pHp.. canada pharmacy

    Reply

  117. When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Many thanks! viagra dosage

    Reply

  123. I intended to write you one bit of word so as to thank you so much once again considering the incredible techniques you’ve provided at this time. It has been certainly unbelievably open-handed with you to convey unreservedly all that many individuals could possibly have offered for sale for an electronic book to help with making some money for their own end, most notably now that you could have tried it if you decided. The secrets in addition acted to be the easy way to understand that the rest have similar dream really like my own to know a whole lot more when it comes to this issue. I’m certain there are several more fun occasions ahead for those who check out your site. cymbalta.

    Reply

  136. I was just looking for this information for some time. After 6 hours of continuous Googleing, finally I got it in your web site. I wonder what’s the lack of Google strategy that do not rank this kind of informative web sites in top of the list. Normally the top sites are full of garbage. achat cialis

    Reply

  144. I must get across my gratitude for your generosity for those people who actually need help on that situation. Your personal commitment to passing the solution all-around has been incredibly significant and has frequently helped guys just like me to arrive at their dreams. Your own helpful guidelines entails a great deal a person like me and even more to my fellow workers. With thanks; from all of us. viagra cost per pill

    Reply

  194. Фундамент самара

    Создание дома вашей мечты – это оригинальная возможность, спланировать и претворить в жизнь нечто воистину уникальное во всех отношениях. Возведение фундамента – это в целом первоначальная модель ремонта, в процессе которой домик строится. При расчете замена фундамента под старым деревянным домом цена предусматривается весьма много факторов. Средняясумма возведения домов фундамента составляет приблизительно от 10$ за кв.метр . Погреб сможет умножить итоговую стоимость каждого объекта недвижимости, предоставляя необходимое помещение ради организации хранения и порой рабочее пространство. Наша профессиональная команда по конструированию и возведенью фундамент под памятник на кладбище цена может помочь выстроить жилище, о котором вы всегда мечтали. От начала до конца наша специализированная компания в Череповец позаботимся о всех без исключения процессах, чтобы заказчику не довелось тревожиться о деталях. Специализированная международная компания в Киселевск несет юридическую ответственность за проект, а не вы, именно поэтому организация в Борисоглебск имеют интерес в том, затем чтобы довести до конца строительство коттеджа быстрее и эффективнее. Узнайте о сваи винтовые для фундамента цены в вытегре у спспециалистовециалистов корпорации.

    Reply

  196. contractor near me

    Repair work residential premises turnkey – much better Solving problems through wizards.In order place an order for repair work dwellings in Diamond District, leave a request on site or by phone. To create hospitality interior decoration expertly as well as properly, it is vital to utilize effective and also extremely audio products that comply with all standards and technological criteria. However the primary distinction is not also in the components, but in how and just how correctly they are actually made use of. And also this is actually the work of the experts. Expert capabilities areactually an extremely essential situation. . Likewise in our firm, you can purchase personalized bathroom vanities, retail interior design on the most effective problems. With us, interior basements, in addition to Premium renovation Bay Terrace, will end up being straightforward, high quality and also quickly. Our representative will call you back, for clarification few details and assign Times of Day arrival to you professionals and designer.

    Reply

  199. Rustic bedroom furniture
    Dreaming refresh your external interior? Read carefully the news of goods home from modern compilation, in her represented as goods with colorful floral patterns and colors and goods with graceful texture finish metallic. Furniture for the garden is considered necessary attribute each modern apartments. In the presented store online you can always buy reliable furniture for garden and home. Our company will deliver in HOLLYWOOD client absolutely all furniture at desired time working day.Retail prices, those that offers web shop office furniture HOLLYWOOD nice all customer.In turn low price may cause separate questions in a relationship proper quality products. The catalog which is today filled diverse items furniture presents exclusively quality products.

    Reply

  209. Bedroom online
    Come in outstanding store in Jefferson Park production for office and home use and cafe! presents over 12000 appointment furniture and goods for a country house and apartments or restaurant. Natural rattan , are used for the purposes of production our branded products , possesses strength and wear resistance, wonderful external data. All furniture processed special compounds, due to which their surface does not absorb water, stable to extremes ambient temperature air and exposure of the sun. Vya our furniture excellent retains its functions even in restaurant in open spaces . In the presented online catalog you offered photos furniture for dining room, hall, bedroom, children’s room , as well as intended for organization of storage area – dressers and cabinets, cabinets and others . In our store in Fairfax you can buy everything for any your home not expensive . We invite client come to store , holding in Westwood what cares about its shopper.

    Reply

  222. I simply want to say I am new to blogs and absolutely loved this blog. Very likely I’m planning to bookmark your blog post . You really come with fabulous writings. Many thanks for sharing with us your blog site.

    Reply

  258. Hello there, There’s no doubt that your website could be having web browser compatibility problems. When I take a look at your blog in Safari, it looks fine but when opening in I.E., it has some overlapping issues. I merely wanted to provide you with a quick heads up! Apart from that, wonderful blog!

    Reply

  260. Знаете ли вы?
    Картина парада Победы, где руководство страны смещено на задний план, получила Сталинскую премию.
    По выбору Утёсова дорога на Берлин шла то через Минск, то через Киев.
    Согласно мифу, Марута Сар пыталась примирить Арарат и Арагац, но не смогла.
    Крейсер «Берик» на рейде в Девонпорте
    Клирик-саксонец стать папой римским не захотел, а патриархом Севера не смог.

    arbeca

    Reply

  269. I blog often and I genuinely thank you for your information. This great article has truly peaked my interest. I will bookmark your website and keep checking for new information about once per week. I opted in for your Feed too.

    Reply

  273. Howdy! I just wish to give you a big thumbs up for the great information you have right here on this post. I will be returning to your blog for more soon.

    Reply

  290. I’m amazed, I have to admit. Seldom do I encounter a blog that’s both equally educative and amusing, and let me tell you, you’ve hit the nail on the head. The problem is an issue that not enough folks are speaking intelligently about. I’m very happy that I came across this during my search for something regarding this.

    Reply

  296. I am the manager of JustCBD company (justcbdstore.com) and I’m presently planning to develop my wholesale side of business. I really hope that someone at targetdomain is able to provide some guidance . I considered that the best way to accomplish this would be to connect to vape stores and cbd stores. I was really hoping if anybody at all could recommend a reputable website where I can purchase CBD Shops B2B Marketing List I am already considering creativebeartech.com, theeliquidboutique.co.uk and wowitloveithaveit.com. Unsure which one would be the most suitable selection and would appreciate any support on this. Or would it be easier for me to scrape my own leads? Ideas?

    Reply

  337. I blog often and I genuinely appreciate your content. This great article has really peaked my interest. I will book mark your blog and keep checking for new information about once a week. I opted in for your Feed as well.

    Reply

  347. The cleansing company performs cleaning of areas of different dimensions and also setups.

    We offer professional maids bronx for personal customers. Utilizing European equipment and also certified devices, we achieve optimal outcomes and give cleansing quickly.

    The business’s experts give cleaning with the assistance of contemporary technologies, have unique devices, and additionally have actually licensed cleaning agents in their collection. Along with the above advantages, glass of wines provide: positive rates; cleansing quickly; excellent quality outcomes; greater than 100 favorable reviews. Cleaning up offices will certainly assist keep your office in order for the most efficient work. Any type of firm is exceptionally important ambience in the group. Cleansing services that can be purchased inexpensively now can help to arrange it as well as provide a comfortable space for labor.

    If needed, we leave cleansing the kitchen 2-3 hours after positioning the order. You obtain cleaning up immediately.

    We provide discount rates for those who make use of the service for the very first time, as well as beneficial terms of participation for regular consumers.

    We give high-grade cleansing for large enterprises and also little companies of various directions, with a discount of approximately 25%.

    Our friendly team provides you to get acquainted with desirable regards to collaboration for corporate customers. We sensibly approach our tasks, clean utilizing specialist cleaning items and also specialized tools. Our employees are trained, have medical books and know with the subtleties of getting rid of complex and hard-to-remove dirt from surface areas.

    Reply

  369. Thanks for this wonderful article. Yet another thing to mention is that a lot of digital cameras can come equipped with a zoom lens that enables more or less of your scene to generally be included by simply ‘zooming’ in and out. These kind of changes in concentration length are reflected from the viewfinder and on huge display screen at the back of your camera.

    Reply

  383. An intriguing discussion is definitely worth comment. I believe that you ought to publish more on this topic, it might not be a taboo subject but usually people do not talk about these topics. To the next! Best wishes!!

    Reply

  442. May I just say what a comfort to uncover someone that really understands what they are talking about over the internet. You definitely understand how to bring a problem to light and make it important. More and more people must check this out and understand this side of your story. It’s surprising you’re not more popular given that you surely possess the gift.

    Reply

  507. In January matrix year, little nlsygs fell ill. It’s okay, just a temperate online cialis, which passed in five days. But the temperature suddenly returned beside the end of the month: the thermometer showed 33. The servant was urgently hospitalized with fever and convulsions. A occasional hours later, three-year-old Yegor stopped breathing – he knock into a coma. With the commandeer of a ventilator and a tracheostomy, the doctors resumed the work of the lungs, but oxygen starvation struck the brain. The kid has lost everything that he managed to learn in three years. The diagnosis is posthypoxic encyphalopathy.

    Reply

  509. I’d like to thank you for the efforts you’ve put in penning this website. I’m hoping to see the same high-grade blog posts from you later on as well. In fact, your creative writing abilities has encouraged me to get my very own website now 😉

    Reply

  523. [url=https://blueviagra.com/]viagra usa[/url] [url=https://viagradm.com/]viagra cheapest price[/url] [url=https://zofran911.com/]zofran online usa[/url] [url=https://buspartab.com/]buspar 60 mg[/url] [url=https://phenergansr.com/]buying phenergan online[/url] [url=https://hydroxychloroquine5.com/]plaquenil price australia[/url] [url=https://viagract.com/]cheap viagra 150 mg[/url] [url=https://tenorminz.com/]atenolol tablets price[/url] [url=https://accutanr.com/]accutane purchase canada[/url] [url=https://hydroxychloroquina.com/]plaquenil for osteoarthritis[/url]

    Reply

  555. Our doctor thought that Dad was perhaps honest control superiors than Mom in this situation. Stricter, more demanding, resolve not regret once again when you need to take inconsolable cialis online. Lovingly, I wanted to send my trouble a break.
    I dog-tired a itty-bitty over a month in the intensive trouble piece and two and a half months in the bone marrow remove unit. There I became a donor in compensation my son. I’m ready I was able to cure him. I was the purely man in both departments, but my parents were already there. That is, a man in the repulse with a young gentleman is no longer a rarity.

    Reply