Top Reasons to Buy a Home

RELEVANT PAGES FOR YOU

1. Different Types of Bank Loans in India
2. Loan Against Agricultural Land
3. Guide to Buy Flats
4. Home Loan Procedure

1. Top Housing Finance Companies
2. Agricultural Loans in India
3. Home Loan Processing Fee
4. Home Loan Provisional Certificate

1. Documents Required For Home Loan
2. Documents for Buying Resale Flat
3. Secured Vs Unsecured Loan
4. Home Loan Approval Time

1. The Real Estate (Regulation and Development) Act, 2016Up until the moment this Act was implemented throughout the country, prospective homebuyers were at the mercy of builders and developers. Many of them were exploited and had to go through various troubles like hidden charges, delay in the housing projects, et cetera, before finally getting their dream house.With no proper mechanism for grievance redressal in place, customers in the sector were growing increasingly frustrated. In addition to this, real estate sector is one of the largest contributors to the Indian economy, but it lacked organisation and proper control. The implementation of the Real Estate Act of 2016 solves that very problem, along with bringing a great deal of transparency in the realty market.As per the Act, a Real Estate Regulatory Authority (RERA) has been established in all the states and Union Territories, whose sole function is to deal with matters pertaining to real estate in that region. It is now mandatory for buyers and developers to register their current and future projects and disclose all the important details like layout, plan, et cetera. Non-compliance with the same will result in strict penalties.Furthermore, RERA also stands to serve as a mediator to settle disputes between builders and buyers. In case the buyers are dissatisfied with the developers, they can approach RERA, lodge a complaint and hold the builders liable for their incompetence. An appellate tribunal will also be established in each state whose job is to consider the appeals against the rulings of the state RERA.Needless to mention, the idea behind RERA is to protect the interest of homebuyers and ensure that they can go about purchasing a home confidently.
2. Tax Benefits that come with Home LoanOne of the best things about taking a home loan (apart from paying for your dream house) is that the part of the EMI you pay can be claimed as tax deductions.As you know, an EMI has two components - principal and interest. The sum paid towards the repayment of principal amount of the home loan is eligible for tax deduction, as per the Section 80C of the Income Tax Act, 1961 and the maximum amount that can be claimed is Rs.1,50,000. Similarly, the Section 24 of the Act speaks about the tax benefit on the interest component of the home loan EMI. The maximum tax deduction for the same is Rs.2 lakh.Apart from this, stamp duty and registration fees are also eligible for tax deductions. Additionally, first-time homebuyers can claim an additional deduction of Rs.50,000, under the Section 80EE of the Act.
3. The Sense of SecurityPaying your home loan EMI every month may seem like a financial burden, but it is a commitment that is definitely worth fulfilling. After all the troubles and sacrifices that you go through, you finally get to have a place you can truly call home. It is a tangible asset whose value will only increase over time. You can also take a loan against your property, in case you need access to cash. In fact, no other investment is likely to give you higher returns that come with owning a property. That's why investing in property is a notion that you should consider in your lifetime. It will require a great deal of financial planning. Presently, the interest rates are low and the consumer interest is protected owing to RERA. If you happen to find yourself in a position to afford a home loan, then 2018 is the year to act on it.
   
   

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