Ways to Financially Benefit from your Home - Home Loan Stories

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06 AUGUST, 2019

People purchase property with a mind-set that financial benefits derived from owning this asset will eventually help them secure their future. Let’s look at the different benefits you can enjoy when you own a home.

Real Estate: An investment that rarely depreciates

Though purchasing a house is a costly affair, in all likelihood it would financially benefit you in the long-run. Going by the real estate market trends of the past few decades, the price of the property you buy would mostly go up in the medium to long term.
Factors that drive your decision on buying a particular home, are also the factors that will determine how the value of this asset changes over time. Apart from the current cost, your choice of locality, upcoming infrastructure and real estate projects in the vicinity, connectivity and combination of surrounding civic amenities also play a role in price appreciation of a residential property.
Furthermore, buying a house with a home loan can be a good investment plan too. Once you borrow money from a financial institution such as a bank, you would be paying a specific monthly amount to repay it. Knowing that EMIs form a part of your monthly expenses, it becomes simpler to maintain your focus and financial priorities.

The financial benefits of home improvement projects

When people seek a new house, either to buy or to rent, they want more than just walls and rooms. Houses that come fully furnished, with additional facilities like modular kitchens are always adored. If you are looking to get more financial benefits from your owned property, you can always think of furnishing it with home improvement projects to elevate its value.
Houses with modern facilities like false ceilings, polished floorings etc., are always sold at higher prices than properties that lack it. Even if you do not want to sell your asset, you can get higher rent for such well-equipped properties.

Reducing the burden of tax

The Government of India has always encouraged the citizens to invest in real estate. Therefore, a home loan is subjected to tax deductions under section 80C. Furthermore, homeowners get to enjoy multiple tax benefits, which significantly reduce their tax outgo.
Also you will find a lot of debate around renting vs buying a home. It is an ongoing traditional debate and the answer to the question varies from person to person depending upon several factors. That being said, purchasing a property can truly be financially beneficial for you and your family in the long-run. What we can say with certainty is that when you buy a home with the help of a housing loan, the instalments you pay are going towards owning an asset that has emotional as well as financial value.
To get started, a housing loan eligibility calculator can help you to find out your eligibility as well as the interest rate for a housing loan. Buying a property is one of the most time-efficient methods to secure your future, as the home you bought can be financially beneficial to you in many ways even after its purchase.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.