buying property on loan OR cash..your suggestions

POSTED BY ainvest ON May 17, 2011 3:48 am COMMENTS (2)

Hi friends

I would like to know your suggestions

I m planning to buy one property(flat) of 28 lacs. I have 2 options

1. I can buy it by paying full money(without bank loan) OR

2. Pay some amount in cash(say 5 to 7 lacs) and remaining amount as loan(which would be 20 to 21 lacs).

(Note : Currently I am abroad so I can not make use of home loan tax saving for another year or two. )

From my study, what I think is that if I could find a opportunity which can beat home loan interest by good margin(say 2-3 % more than home loan) then it makes sense to take home loan and invest the equivalent capital into that opportunity which beats home loan. Also, once i m in india I can take advantage of income tax benifit on home loan which is after 1 or 2 years.

Also, I am quite align on my monthly investment for retirement and other goals thrugh MF SIP’s.

I would like to know your suggestions on this

thanks in advance

Amol

 

2 replies on this article “buying property on loan OR cash..your suggestions”

  1. Dominic Prakash says:

    Get a loan like SBI Maxgain or HSBC SmartHome loan and put all your money in that account and make your loan interest free as well as money available for emergency or for the whole loan term.

  2. Asif says:

    My Answer you already know! 😉

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