6 reasons why you should buy a house in 2016
With the Budget session close on our heels, now is the time when investments are a hot topic around us – be it tax saving investments or reorganization of finances or a new plan for the upcoming financial year. If you were in two minds about buying a new house, this is the best year to take the leap. Here are 5 reasons to buy a house in 2016:
Attractive Home Loan Rates
One of the most important factors that determine the cost of your loan is the interest rate. Higher the interest rate, higher is your cost of long-term property purchase. After a couple of rate cuts by RBI, the home loan rates have come down in a long time. 2016 can turn out to be a good year to make the most out of the opportunity with more rate cuts expected to follow.
Home loan finance not only allows you to realize your dream of owning a beautiful home, they also help you gain attractive tax benefits. The interest on your Home Loan EMIs qualify for deduction. If you use the house for your own residence, then you can claim upto Rs. 2 lakh for deduction. In case of a rented property, you can claim the entire interest amount for deduction. The principal component of your Home Loan is available for deduction under the Section 80C of the Income Tax act. You can claim upto a maximum of Rs. 1.5 Lakhs under this provision.
Why rent when you can Own
The most important reason for most people to be investing in a house has to be this- Even if you had been living in a house for five years straight, it does not become yours. With the increase in rental rates, the best possible solution is to move in to your own house. If you are paying a substantial amount as your house rent, why not convert it into your home loan EMI that will give you your own home and at the same time, form your biggest investment from a long-term perspective.
Real Estate Investment can yield one of the best long-term returns in a fast-developing country like India. With the fast appreciation in land prices, accompanied with growth in infrastructure, purchasing a house can be the next multi-bagger investment. Metro cities like Chennai provide the opportunity to invest in high-potential growth hotspots. OMR is one such area that represents the great Chennai dream. The stretch developed as a designated IT/ITeS corridor over is the second highest exporter of information technology in India. The growth has fuelled real estate activity in the region and has made the region desirable. You can check out some attractive projects here like Casagrand Aldea and Casagrand The Address
Riding on the infrastructure growth story, lot of attractive projects are coming up. With the advancement in technology and aesthetics, houses are no longer seen as a place to board and lodge. The pleasure of having all your amenities like swimming pool, gym, and play area etc.in one’s own house is the best. There is a growing demand for aesthetically built ultra-smart, living spaces that are technologically sound a well. Thematic houses are also a craze now-a-days. For example, Casagrand Arena is a dream for any sports-lover.
In case, you already own a house, you can still purchase a house and let it out for rent. The rental income can complement your monthly income. The long-term Return on Investment can be in terms of capital appreciation on property sale as well as the regular capital inflow from rent. Even if you invest the rent in a simple Recurring Deposit, it will fetch you approximately 8-9% per annum. This can enable you to provide a stronger financial security for your family.