The real estate market in major cities of our country is growing exponentially. This is evident by the rampant construction of high-rises, especially in metropolitan cities. Rental houses can be an expensive affair without any foreseeable future gains and practically zero returns.
It is common knowledge that the current real estate market is over-inflated; making it even more difficult for people to buy houses. Buying a dream house is nothing more than a far-fetched fantasy for the proletariat.
However, acquiring a home loan from a reputable and regulated financial institution can reap dividends in the future and can make your dream come true.
Top 4 Home Loan Benefits
In the following paragraphs, the benefits of owning a house and the advantages of acquiring a home loan are discussed in detail.
Long-Term Profitable Investment
Many people are apprehensive about paying the mortgage; however, they fail to realize that once the mortgage is paid off, they are owners of a property whose value will only increase.
The value of the purchased house would be double in a few years and you won’t need to pay any rent. In fact, you can be the landlord and earn money. Also, the maintenance costs are minimal compared to monthly rents. Buying a house is a long-term investment, which will be certainly worth it.
Good Credit Score and Tax Benefits
Acquiring a home loan and paying the mortgage on time will help you build a good credit score. A good credit score would make future borrowing very easy and increase your credit limit. A healthy credit score is also a strong indicator of financial stability and growth.
Also, the Indian government encourages people to buy houses as it boosts the economy. This results in tax benefits and the biggest one is the option to deduct mortgage interest payments on your income tax returns, especially at the start of a mortgage wherein interest costs are at their highest.
Quick Returns on Investments
While paying the mortgage, part of the payment goes towards the interest and rest of it towards the principal amount. This means the more principal amount you pay off, the more of the house you own.
As such, every paid installment counts and provides instant returns. After you have paid off the mortgage you can use your house as collateral to obtain other loans.
Stability and Freedom
Rental houses have short-term leases and moving from one house to another can be a daunting task. Moving constantly like nomadic tribes in the civilized world can be financially and emotionally taxing.
On the other hand, owning a house would be financially lucrative and provide the much-needed stability and comfort. Plus, owning your house means no intrusion from the owner/landlord and you can plan your home interior setup at your discretion.
Becoming a homeowner also implies being part of a community. This will help foster friendships and increase your community involvement while making you a valuable member of society. Conversely, building relationships with neighbors and local corporators becomes an arduous task when you are renting.
You can enjoy the plethora of benefits mentioned above by becoming a proud homeowner. Thankfully, there are many reputed and regulated financial institutions today that makes it easy to find out the EMI of home loan so that you make the right decision. Due to the rapid advent of technology, it is possible to easily apply for the home loan online.