Owning a house is a dream project in one's life. Hope you are on the look out already..
Here is some interesting news that I could share.
1) Rates of apartment are coming down and is sold at a discount between 5-10%.
2) You may also look out for individual plots at suburbs and think of constructing a building on it within few years time. The plot prices are down by 10 - 15%.
Now this is buyers market. Atleast for next few months this is going to prevail.
You dont need to have too much to buy a house. You would just require to mop up say 10 - 15% on the total project cost. The remaining would be funded by the bank / financial institutions.
Public sector banks announced the rate cuts. Latest rate cut is from SBI. SBI is providing home loans at 8% p.a (for the first year) and 8.5 to 10.5 depending on the loan amount, tenure. Check out the terms and conditions.
Now, the tax benefits that accrues for home loan are as follows
1) This is the primary component that helps you to reduce your salary income / business income.
i) Interest on self occupied house property could be claimed to the maximum extent of 1.5 lakhs
ii) Interest on let out properties, you would be surprised to know that there is no ceiling. Suppose you borrow 30 lakhs as housing loans and pay interst say 2.7 lakhs. the entire 2.7 lakhs of interest is deductible from rental income :). And the loss so computed can be reduced from your income.
2) The principal repayment for house properties is restricted to a maximum of 1 lakh..
This piece of information is just a starter and you may add your mail to this blog post.
You would continue to get more updates.
