Are Home Loans Advisable?
Taking home loans can be useful as it will reduce the tax you pay each year. The interest amount of the home loan is deductible from your total taxable income. Of course, it is also useful, if you earn a monthly income and do not have to pay a lump sum amount for your new home and get the flexibility to pay at your convenience. You can either take long term or short term home loans, at a fixed or floating interest rate, whichever suits you.
However, if you take long term home loans, you may end up paying a lot of money in the interest and this could be much higher than the actual value of your home. Also, you will not be able to utilize your House Rent Allowance in case you are living in that house. Whereas if you choose to use floating interest rates, the rates can keep on changing over time and you can end up paying much more than predicted. It is also a long term commitment and if you lose your income potential, it may be difficult for you to pay it back the home loan, resulting in you evicting the home and handing it back to the bank. So, always think of all the possible outcomes before taking up home loans.
We hope we helped you by this post to understand more about the topic: Are Home Loans Advisable?
More on Loans https://money-succes.com/category/loans/