Wednesday, 7 August 2013

Home Loans Ensuring Excellent Savings in Real Estate


Realty segment and finance go hand in hand, when we talk about the real estate transactions for holding strong ties, and making the dream property possession turn possible. Nowadays, the home loans and other available commercial credits offered by the financial bodies have brought a sigh of relief for the buyers and investors who have to face numerous difficulties in the past. This article discusses about the benefits that home loans bring in, and the various related aspects.

In India, real estate is believed to be the most dynamic and profitable segment with an increased number of investors coming from every part of the country. Booming population, establishment of big businesses even in the small towns and the advancement of villages has created numerous options for the homebuyers. 

There has been a rapid increase in the number of investors considering investing in the residential properties, and this is the reason why the banks have started offering several home loan schemes for ensuring infrastructure developments even in the less developed locations.

The effect of real estate can be seen clearly with the surge in the drastic upliftment of the lifestyle of the citizens. Numerous options have been made available for the common buyer to channelize their savings. The home loans have been the blessings in disguise, which have largely reduced the additional pressure on the buyers’ pockets. 

With so many options available in the housing loan category, the end users can look out for the suitable plan according to their requirements. Home loans have also been an advantage to the investors. The top most benefit enjoyed by the residential property buyers over their home loan is a tax advantage.

Benefits of Home Loans

The modern day investors look forward to saving a big amount while they make investments in the residential properties. The burden of house loan repayment can be greatly reduced by a number of alternatives, which are available for the buyers and investors. Such types of available options certainly help in saving money in the end. The investors who fall in the category of maximum tax benefit brackets are lucky enough to save some huge amounts from such exemptions. The money that is saved can come out to be big after completion of one year, and more if it is for the long term.

Principal Amount

As per the entire procedure of the loan application, there are a number of sections that define the home loans. Section 80 C describes the exemption, which an investor can enjoy after he/she repays the principal amount and carries forward a cap of Rs. 1 lakh. The exemption is only allowed when the owner is residing in the house and the house is not under construction. Besides, the buyer can claim a possible amount in case the owner lives in some other city.

Interest Amount

Section 24 of Income tax descries the interest amount and is broadly applicable to an amount of Rs. 1, 50,000 annually. Under this clause, the owner does not have to reside in the house in question. Once the lending institutions certify the tax paid by the borrower, the amount is deducted from the taxable income.

Combined Effect

If we aggregate the amount of principal and interest, an investor is eligible to gain total exemption of Rs. 2,50,000 from his/her taxable income. A person can save not more than Rs. 83000. These home loans have indeed brought about revolution in the properly dealings where even the buyers belonging to the middle or lower income group can invest in properties and save a higher amount over the period. Now in India, it is not a big monetary deal to own a home. Invest in properties and save substantial with home loans. 

Author Bio: Rashmi Karan is a professional content writer who offers genuine and accurate information about the current real estate trends regarding purchase and sale of both residential and commercial properties across nation.  



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