1) Opportunity to Increase your FinanceEven when you're capable of purchasing a house with your fund, you might still need to avail a house loan centre to save taxes.
You may thus invest your money to make an attractive yield.
As an instance, the present rates of interest on floating rate home loans vary between 7.9percent to 8.3percent per annum based upon your credit rating, loan amount and credit score.
These record-low prices are now being provided later RBI's directive to creditors to connect retail loan rates into an external standard such as the repo rate.So, on a house loan at 8 percent interest rate, let's assume the entire interest level on your home loan is Rs 3.5 lakh per year and you can exhaust the whole deduction available under Section 24 and Section 80EEA.
Therefore, you can make a greater return on your fund and pay a lesser interest on your mortgage, based on how much tax you are able to save along with the ROI potential.2) Liquidity advantageIf you face a liquidity crunch and are made to have a financing center such as an unsecured loan or a collateralised loan, then it can cost you a lot more in interest in relation to a house loan amount.
So, why use your personal funds and reside at a liquidity crunch to get a house?