Planning for the Financial Year – two home loans

POSTED BY Endee777 ON January 5, 2015 10:38 am COMMENTS (2)

So currently I have two home loans:

1bhk 1098000, 13% rate of interest, outstanding amount 8lac+. This property Is self occupied fully furnished. EMI is 11,388rs

3BHK under construction, disbursement of 18lac so far, first EMI PAID this January 17k. Expected possession date is March 2016. loan amount is 54lac.Rate of interest  10.15%. BOTH housing loans are from HDFC.

i have 10lac in savings. Expecting bonus of at least 4lac in February. Also have 7lac in FD (maturing) every 6 months kept for emergency purposes.

cash inflow combined of my spouse and myself is around 1lac 60thousand. i am hoping to buy a commercial property around, estimated around 15lac minimum and renting it out after I get its possession in 1 year or so. I WONT be spending more than 15lac in buying it, don’t really want to lock all money or pile up additional loan to buy that commercial property.

if I pay 8lac and close my 1bhk loan I will not be able to get benefit as the 3bhk is under construction. Once I get 3bhk possession I would be able to claim benefit on both principal and interest for FY 2016-2017. At that time I can use the 1bhk rent to Pay emi of 1BHK or close the 1BHK Loan that time and use the rental income as passive income. till that time I will have to pay two EMIs – current 1bh k emi and increasing Emi of 3BHK Per the disbursed amount, and claim tax benefit using 1bhk loan for FY 2014-15 as well 2015-2016.

I also have a thought that I will handle at least one demand from the builder for my 3bhk, like let’s say 9thslab disbursement ask is 7lac I will try to pay some of it on my own so that I would have taken only 48lac out of  sanctioned loan of 54lac. This I am thinking in an effort to reduce the payable loan.

Keeping above in mind I was looking for some advise on optimum ways to handle the situation such that the tax benefit is maximum also my most of maximum goals said above are met.

2 replies on this article “Planning for the Financial Year – two home loans”

  1. sharath Mumbai says:

    Hi Endee,
    In all, you have 2 loans currently and combined EMI can go upto 61k in an year.
    Your 1BHK loan is costly (13%). I would suggest paying it up before thinking of any other loan. If you have money ready in hand, then its better to pay off the existing costly loans. You can buy the commercial property once you get the possession of your 3BHK.
    So that the rent from your 1BHK would reduce the burden and help in the EMI payment.

    1. Endee777 says:

      But if i close the current 1bhk loan i will not be abke to claim the deduction due to home loan interest for fy 2015-2016 (limit has been increased to 2lac recently) I will also have to make Investments to cover 80c.

      3bhk loan cannot be used for tax filing as its unoccupied. Its only after possession that i will be able to claim the normal 80c and interest deduction for fy 2016-2017.

      So that’s why only way out for me is to pay to emi’s till i get 3bhk possession (hopefully in march 2016)???

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