Buying a house on a home loan EMI or living in a rented house is one of the crucial decisions that you can take in your life. Most people are in favor of renting an apartment rather than buying a home. However, having a home is not just about owning a space, but it is a place of peace, comfort, and status.
Besides that, opting for a home loan is the best way to own a house and yet be able to manage your finances without putting any financial burden on your shoulders. If you have a stable source of income and a sufficient amount to pay as a down payment, it is highly recommended to opt for a home loan EMI to own your dream house.
The best thing about a home loan is that you can use a home loan EMI calculator to determine how much you can afford to borrow based on your repayment capacity.
Here the reasons a home loan EMI is better than a home rent
- Social status
Owning a house not only brings with it a sense of comfort and peace, but it is also a matter of pride. It represents your social status, success, and accomplishment in India. So, if you fancy such benefits, opting for a home loan EMI is the best way to own your dream house.
Another benefit of buying a home than living in a rented apartment is that you have the sole ownership of your home. No one can force you to vacate your house or prevent you from renovating or remodeling the way you want to. Also, it eliminates the hassle of dealing with your landlord over petty issues.
- Wealth building
Unlike your home rent, your home loan EMI is a way to build wealth. On every EMI payment, you increase the equity of your property. It enables you to get a roof over your head and also build an asset with considerable value. Further, there is no need to stress about rent or renewing the rent agreement every year.
- Long-term benefits
Buying your dream home with a home loan EMI reaps long-term benefits for you and your family members. For instance, when you spend money to renovate or make changes to your house, it adds value to your house. Such benefits remain reserved for you and your loved ones.
- Tax benefits
You can also avail of tax deductions under the Income Tax Act 1961. As a borrower, you can get deductions up to Rs. 150,000/- on the principal repayment and up to Rs. 200,000/- on the interest rate payable from your income. It is a great way to reduce the overall cost of borrowing.
- Manage your finances
You can use a home loan EMI calculator to determine your affordability and draft a repayment plan without putting financial stress on your monthly budget. The home loan EMI calculator enables you to figure out an EMI based on your components, such as principal loan amount, interest rate, and loan tenure. You can alter changes as many times as you want until you reach a suitable EMI for yourself.
So, if you want to make an informed decision, a golden piece of advice would be to buy your dream house with a home loan EMI without worrying about putting any constraints on your finances.