After its demonetisation drive, the Modi government has given a bit relief to homebuyers. The vision to have home for everyone by 2020 is the dream project of PM Modi. Recently, banks too have slashed their interest rates to make it more possible for people to buy their home.
Here are five benefits of buying a home for yourself:
It is a good Investment option
Buying a house can be the best option for getting a good return on your investment. Give your house on rent and earn regular rental income. If you want to sell your house then ideally sell the house after 3 years from the date of purchase because that will give indexation tax benefit under long-term capital gain. You also need not pay taxes if the entire gain after selling the property is used for buying another property within two years of selling it.
Adds up to your net worth
Any property purchased gets added up into your assets which in turn increases your net worth. Net worth simply means the difference between your asset and liabilities. The larger the asset value the more will be your net worth. A real estate heavily increases your net worth. However, primary residence is never included in your net worth because at the time of crisis you will never sell your shed.
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Improves your CIBIL score
One should always repay one’s loan amount on time. By doing this your CIBIL score will be rated on a good scale. CIBIL score helps you in taking other loans for your necessity and through the score individually you may get cheaper interest rates. CIBIL score is maintained for every customer, where home loan ranks on the top because it is taken for a longer time period.
Provides you tax benefit
You can claim up to Rs.2 lakh on the interest paid on your EMI’s (equated monthly instalments) under section 24 while the principal amount can be claimed up to Rs.1.5 lakh under section 80C of I-T act 1961.
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Other tax benefits
The cost incurred on stamp duty and registration fee can be claimed under section 80C. However, the processing fee is claimed under section 24 of I-T Act 1961. You can even claim HRA benefit under section 80C unless and until the construction of your home is not complete.