Unlocking the doors to your dream home is no longer just a distant aspiration. With proper planning and support, it's now within reach for many. Let's delve into the remarkable advantages that home ownership, aided by a home loan, can provide.
Advantages of homeownership through Home Loans
Owning a home is more than just having a roof over your head. It's about building a future, setting roots, and taking control.
Building wealth
Through each Home Loan EMI payment, you are not merely clearing a loan; rather, you are gradually accruing equity in a substantial asset. Unlike rent, which might appear as an expenditure with no returns, owning a home translates to a constructive investment. It is up to you to capitalize on this opportunity with competitive home loan interest rates and flexible payment options.
Free yourself from rent hikes
Renting a home might seem like a convenient option. But it leaves you vulnerable to the uncertainties of rent hikes. Year after year, tenants find themselves at the mercy of landlords who may choose to increase rent for various reasons. Owning a home through a Home Loan can shield you from these uncertainties.
Personalise your home
With ownership comes the ability to tailor your living space to suit your unique taste. You no longer have to adhere to restrictions imposed by your landlord. You can paint, decorate, or renovate your home as you please.
Investing in your future
By opting for a Home Loan, you are investing in a stable future. Real estate often appreciates over time, which means your home could be worth more in the future than what you paid for it.
Knowing your monthly Home Loan EMI allows for better long-term financial planning. Even if the interest rate on your home loan may change, your bank will inform you of the change in the monthly repayment amount, thereby allowing you sufficient time to plan for it. Tools like Axis Bank's Home Loan EMI Calculator can help you plan your EMIs according to your financial standing. This aids in secure financial planning.
Leverage your home in case of an emergency
As a home owner, you can also put your asset to use in case you need funds in an emergency. You can avail of a Loan against Property using your home as collateral and use the funds for any personal or business need. The rates on such a loan are lower than say, a personal loan, because it is a secured loan.
Tax benefits and homeownership
When considering a home purchase through a Home Loan, one aspect often overlooked is the substantial tax benefits accompanying homeownership. These benefits can significantly reduce your taxable income, providing considerable savings.
- Interest deductions: Interest paid on a Home Loan is deductible under Section 24 of the Income Tax Act. This means that the amount you pay in interest could reduce your overall taxable income.
- Principal repayment deductions: The principal portion of the Home Loan EMI is also eligible for deductions under Section 80C. This lessens your tax liability, translating into more savings. Utilising a Home Loan EMI Calculator can help you ascertain the principal and interest components, aiding you in planning your tax benefits.
- First-time homebuyers: Special provisions might be available for first-time homebuyers, offering additional tax deductions. These incentives are designed to encourage homeownership and can provide significant financial advantages.
Also Read: [ Home Loan and Mortgage Loans - What's the difference?]
Conclusion
Owning a home is more than a milestone; it's a significant financial investment that offers numerous advantages. Homeownership provides a potent means for achieving financial growth and stability. It empowers individuals to build wealth, transcend escalating rent expenses, exercise creative control over their living spaces, and tap into advantageous tax benefits.
With Axis Bank's Home Loan products, you can access tailored financial solutions designed to support your journey to homeownership. If you are already a homeowner with an existing loan, Axis Bank's Home Loan Balance Transfer option enables you to take advantage of lower interest rates or better loan terms, further enhancing your financial flexibility and independence.
Take charge of your financial destiny and leverage the advantages of homeownership. After all, your home is not just a place to live; it's an investment in your future, and with Axis Bank, it's an investment made wisely.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
