A perfect home of our own often comes off as the most valuable and exorbitant purchase and the big-budget investment we make in our life. Acquiring an apartment or flat as your own is even better than one’s wildest dreams and everyone strive hard to make such a vision to reality. For the attainment of such an accomplishment one can either go for own money or housing loan for financing the home. Housing loan is a sort of financial obligation, as the buyer of the flat will be bounden to repay the housing loan, that too with the Interest. With the spiraling rates of properties, it is not at all an easy task to buy a flat utterly using the saving. So, there comes the home loan to help you take the biggest stride of acquiring a home.
Although, home loan is a liability, still it comes up enough benefits for the buyer. Buying a flat is for sure one of the greatest achievement and it is totally worth to take a loan. Housing loans evade the difficulty for people to afford grabbing a flat of their own. For people with regular income it would not be burden for them to repay the monthly installments. Housing loans even possess the advantage of a lower interest rate than any other loans out there. With the falling interest rates it will be easy for the buyer to manage the housing loan. Capital appreciations of flats are definitely attractive, as it will be for sure higher than the housing loan interests. Monthly installments can be taken as savings instead of referring it as spending. As it will stand firm against the tendency of overspending. Housing loan also helps in ensuring the legality of flats, as the lender of the loan will be compelled to examine every clearance certificates got by the builder. Another important advantage that is in the possession of housing loans is tax benefits. By taking home loans people can claim a tax deduction. Buying a flat with own money will never provide such a benefit of tax deduction.
However, home loans or housing loans own quite a lot of benefits, it still have certain disadvantages. Beyond doubt, housing loans can be called as a kind of commitment that is large enough to make the buyer indebted for a very long time. And it forces the buyer of the flat to trim down all the expenses and daily expenditures and he or she even lose the chance for making another investment. Housing loans also have its risks, as the life of a person never ever goes as if expected. There are chances for the buyer to confront with some sort of unexpected instances that may make difficult for him or her to repay the home loan.
Both, buying a flat with or without housing loans, possess its own benefits and drawbacks. The buyer must consider all the necessary details regarding the financing of the flat before making the final decision for avoiding any sort of regrets.