Owning a house for the first in India makes it more than just some property rather, it becomes a source of a sense of security and pride for you. It also shows that you have stable financial growth. Moreover, the fact that it is your first home is what makes it more exciting and special. Though with the excitement, you might also have lots of doubts and worries regarding your future financial expenses and your other financial goals. Despite all the confusion and dilemma, most Indian citizens nowadays prefer to have their own home rather than living in a rented house. Do check out the latest housing scheme plan.
Owning a house is one of the biggest achievements in everyone’s life, which can also become a source of motivation for many, to work harder and to control their unnecessary expenses. And to encourage and motivate more buyers, the government of India is offering tons of benefits to first-timers.
Though first-time homeowners might have to face some limitations, major among them is arranging the money for the down payment and monthly installments. But if you decide to buy your house in the recent year, it is possible to avoid such limitations and get tons of benefits.
Reason Why Opting For Buying a House Is a Good Option for You
Low Rate of Interest on First Home Loan
Most of the banking and financial institutions offer you a lower interest rate if the home loan amount is less than ₹30 lakhs. The banks can provide you a home loan that is worth around 85% of the house market value. So you can buy a house which has a price range between ₹35lakhs to enjoy all the benefits.
It is prohibited the best time to buy a house as every bank is offering the lowest possible interest. These banks are following the order issued by RBI in October 2019, which asks the bank to link their floating loan rate with the repo rate.
Higher Inventory Rate Can Result In Better Deal
Building low-cost homes have been a point of prime focus for the government for the past few years. It is why the government has launched schemes like “Housing For All by 2022” and “PMAY.” All these schemes have played a huge part in lowering the cost of houses and making them affordable for the common people.
Smaller Home Loans Ease Your Worries
If you apply for a smaller Home loan amount, then it becomes easier to repay. Apart from repayment, other additional expenses like registration fees, stamp duty charges, etc., also become lower for affordable housing.
Benefits You Can Get As First Time Homeowner
If you have applied for home loans, then you claim a deduction of up to ₹1.5 lakh if you pay the principal portion of the loan.
The Period for Deduction of interest Paid Can Be Stretched
The interest you have to pay on a home loan could become a ground for deduction up to ₹2lakhs on your gross income during the calculation of income tax on house property. However, this deduction is only valid if the construction or acquisition of a house is completed within five years from the financial year on which the home loan is taken.
Additional Benefits on Tax If You Don’t Get HRA
The additional tax benefits can be available if you are buying a house for the first time under section 80GG. Under this section, you can get a deduction on expenditure you bore and also get a 10% deduction on rent payment of accommodation if your employer doesn’t provide you HRA. Though there are few limitations, like the expenditure should not be more than ₹2000 each month or more than 25% of total yearly income ( whichever is lower).
You can get a deduction of up to 2 lakhs on payment of interest on a home loan under section 24. But the deduction is valid only if the property is self-occupied. If you rent the property for these purposes, then there is no limit on the amount of deduction you can claim. Thus you can claim the entire amount of interest, even if it exceeds the limit of ₹2lakhs.
This tax deduction is only available to first-time homeowners and ranges up to ₹50000 on payment of interest.
Apart from a basic tax deduction, you can also benefit from PMAY (Pradhan Mantri Awas Yojana), a special design to provide houses for middle and lower-class people. Thus all these schemes and tax deductions can ease your debt burden for buying the first house.