Hello,
I am thinking to buy an apartment for around 60~80 lacks. I am thinking to pay all from my pocket but my friends are suggesting to take partial home loan for tax benefits. Will be be advisable to take a loan even if one have money to pay it from his pocket. asked Jun 23 '11 at 21:33 by Jitendrak 1●4●5●5 |
There are different parameters to decide upon whether loan has to be taken or not. Peace of mind: If you don't take loan, you will have peace of mind. You can take some riskier decisions in life (like job change, starting your own business) without thinking about how I will pay EMI. Return on investment Vs Income tax benefit on home loan: If you take loan, where do you intend to keep your money. If return on such investments is more than effective rate of interest on home loan, then it makes sense to take loan and invest your money. Safety amount: Don't spend all your money in buying home. Keep some safety amount liquid for some unforeseen events. If needed, take loan for a small amount say 15-20 lacs. Near future needs: If you planning for some near future expenses like buying a car, foreign vacations tour and home appliances, then keep a separate amount for them before buying home. answered Jun 24 '11 at 00:01 by Pankaj Batra 5.2k●3●20 |