Why invest in properties?

People often looking for investment options to double their money and try to invest in Commodities, shares, NSC Bonds, Mutual funds, Gold and in many other ways, but most of these investments have risk factor included in them which can increase your amount and decrease your invested amount.

To increase the investment amount over the years with the possibility of getting tax deductions and the possibility of taking advantage is only possible with the investments in properties. It is accepted that investing in properties is not a simple task to do it and is not affordable to everyone. People that have the affordability, income and who pay higher taxes can plan for a investment in property.

With the booming real estate sector and with the rising demand of luxury properties one can easily gets benefited if they plan to invest at early stages. For Ex. A builder will sell a flat at lesser price at the initial stages of construction and raises the cost at the completion stage. It is advisable to invest in property at this point of time where the property can be obtained at lesser price and there is no need to pay complete amount of money towards the purchase.

If one invests in property at the starting stage of construction the benefits are high for any customer. A customer need to pay margin amount of 20% of property cost on his own and can avail home loan for remaining 80% of the property cost. The home loan interest rate charged on fresh purchase of property starts at 10.50% and it varies depending on loan amount. Most of the projects will have a pre approval from banks and it will not take much time for any customer to complete the process. At this stage banks will not charge any EMI and only charge PRE-EMI which will not come under repayment tenure but which surely give tax benefit. The Pre-EMI gets increased depending on the loan amount disbursed and the construction stage. The maximum tax benefit one can avail on home loan under section 80© of Income Tax Act is Rs. 1, 50,000 /- on interest paid on home loan and Rs. 1,00,00 on principal amount repaid on home loan.

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