Need advice on buying a flat

[%C3%81lefe]

Hello everyone.

I am earning 15LPA and consequently paying a huge amount of sum in taxes. Would it be wise to buy a flat for rental income and tax benefits ?

Conditions :

1. I don’t own a house presently.
2. I have an offer for flat at 30L(negotiable) with earning rental of approx 12-13 K pm.
3. I have my emergency funds etc sorted.
4. Have good CIBIL score so loan wouldn’t be problem. Infact I can get organisational HBL also @8.5%.

Can someone please guide me whether it’ll be wise or unwise to do so.

 

[imjapun]

@%C3%81lefe Wont the tax benefits due to home loan be offset to a considerable extent by the additional rental income of 1.69 lakhs in your name every year?

You say you do not own a house. If you are staying in your parents' house then its ok. Else you would be paying rent yourself. So, you could go and stay in the new house yourself and save on rent.

If you want to go for real estate, go for it only after exhausting other avenues for tax saving. Maintaining a house given on rent is a time and effort conauming activity in itself.

Sit with your partner, weigh sll options and then decide course of action.

 

[%C3%81lefe]

@imjapun That’s a nice advice …and yes I’ve actually exhausted most of means to save up on taxes 80c, 80ccd

 

[%C3%81lefe]

Plus staying in govt accommodation

 

[rae46]

@%C3%81lefe Buy the house. In less than 5 years with the tax saving, the bonuses, property appriciation ,etc you will be very glad about your decision .

Also at 30 lakhs purchase price, the downside is very little. If you were trying to buy a 1 cr house then it was a dilemma, not right now

 

[%C3%81lefe]

@rae46 Thanks much. Makes sense

 

[ceedaisyscraps]

@%C3%81lefe Won’t advise you to go for loan at 15LPA unless you’ve a partner who makes similar to your pay. Enjoy the freedom until you get married.

 

[%C3%81lefe]

@ceedaisyscraps I’m married and my wife earns almost the same too

 

[ceedaisyscraps]

@%C3%81lefe You can go for it but make sure the duration of the loan stays within 15-20 yrs not 25-30 yrs.

 

[resjudicata]

@%C3%81lefe 12k pm rental income for a 30L house is a Steal(4ish % return). Try to negotiate as much as possible & get the property for the lowest possible price. Would you mind answering the location of the property?

 

[%C3%81lefe]

@resjudicata Mohali