Home Loan Query

POSTED BY vksnathan ON March 11, 2013 3:19 pm COMMENTS (8)

Hi All,

I need your help in choosing the best option for my Home loan needs.

Background Information
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I current own a piece of land in Chennai ( Registered jointly under my name and my wife name ) and I am planning to build a home.The construction will be started some time in 2013.I currently estimate the construction cost to be around 30 lakhs.

Additional Facts
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1.My Wife is a home maker.

2.I am in the 20% Tax Slab and my wife is in the 10% Tax slab.

I currently have 2 options.

1.I can foreclose some FDs for the entire cost of the house and construct the home without any home loan.The FDs are currently earning less than 10% interest rate.

2.I can take a joint home loan to avail the 3 lakhs interest deduction ( For me and my wife ) given by the IT Department.I have choosen SBI Maxgain Homeloan for this purpose.I am NOT planning to use the Principal deduction under 80 C as my EPF and PPF contributions will cover it.

Please advise on the best option in my scenario.

8 replies on this article “Home Loan Query”

  1. vksnathan says:
    March 14, 2013 at 12:05 pm

    The Estimated Amount is 30 Lakhs

    Reply
  2. Ashal Jauhari says:
    March 12, 2013 at 6:03 pm

    Dear Vksnathan, what ‘ll be the cost of construction?

    Thanks

    Ashal

    Reply
  3. vksnathan says:
    March 12, 2013 at 2:43 pm

    It is for Self Occupation.

    Reply
  4. Ashal Jauhari says:
    March 11, 2013 at 11:40 pm

    Dear Vksnathan, the house in question ‘ll be for self consumption or for renting?

    Thanks

    Ashal

    Reply
  5. vksnathan says:
    March 11, 2013 at 10:29 pm

    Nope.No Plans of returning to a job in the next 5 to 7 years.

    Reply
  6. Ashal Jauhari says:
    March 11, 2013 at 10:05 pm

    Dear Vksnathan, any plan of return of your wife into job & earning?

    Thanks

    Ashal

    Reply
  7. vksnathan says:
    March 11, 2013 at 8:36 pm

    She was on a job earlier and some of her income is invested in the form of Fixed Deposits.She quit the job after child birth.

    Reply
  8. Ashal Jauhari says:
    March 11, 2013 at 5:52 pm

    Dear Vksnathan, if your wife is a home maker, how is she in 10% tax slab? Please clarify.

    Thanks

    Ashal

    Reply

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