It is a common perception that having a home loan is a well-known liability because of its huge amount and the lengthy tenure involved in it but little do many knows that it also offers some benefits.
Buying your own house is one of the biggest step you take in your life, it creates excitement, anxiety, frustration and other emotions but above it all is a sense of accomplishment but with the ballooning property rates nowadays offered by realty estates companies, we often encounter difficulties if we depend on our savings entirely and it is a requirement for most people who have a family or a couple to have their own home loan.
In this handy article, let us discuss the benefits of having a home loan which is not commonly discussed by many, this is our chance to learn its benefits and take full advantage of it.
Sense of accomplishment
When we buy a home, its sense of fulfilment is unfathomable because many consider this as the biggest financial investments in their lifetime and most of all its sentimental value can be passed from generations to generations of a family. Buying a home is also considered the biggest component in most people’s portfolio.
Buying a home has been considered by many as a very appetizing capital appreciation even though it is often being argued by a lot of financial experts but in the past few years, many have embraced its concept as an ideal capital appreciation due to the soaring prices of real estate properties. There is an increase in the construction cost in real estate properties annually according to a decade report while rents have also kept its pace behind it to keep up with the inflation. Having a home is one of the rare investments that keep you shielded against inflation on a long-term basis.
When you buy a new home, it is considered a long-term decision with some even reaching to a ten-year period of just making that very important decision. Making it hard to decide is the interest rates that undergoes cycles that come up and down but there is also benefit from this considering that the falling rates also creates an advantage to the people availing home loan. There were many instances that the interest rates of real estate properties to plunge down in the mid 90’s which dropped up to 18 percent but it recovers quickly in the following years but for people who took advantage of it, their wealth doubled after the drop and it is still possible that this could go down due to the increasing number of real estate developers which contributes to lower down the interest rate.
There are laws imposed constitutionally that the total interest that was paid on the home loan from its purchase up to the construction can be claimed according to the computed total amount from your house property. This is the income tax act of 1961 as per section 24.