Everyone wants to buy a home no matter how small it may be. It is a dream everybody wishes for it to get fulfilled. The task of buying a home is an involved challenge but also gives a sense of accomplishment once completed. However, if you can get tax benefits on the purchase then the home buying journey becomes more enjoyable.
Buying a home gives you additional future investment options. In case you wish to move on then you can even benefit from renting out your home. According to the Indian Income Tax Act 1961, if a person has taken a home loan then he/she is eligible for tax benefits under Section 80C. The person paying the EMIs on the home loan is eligible for tax deductions under various components that include the deductions on interest paid and deduction on principal repayment.
With such tax benefits in place, buyers are starting to look towards buying a home along with the savings for the future. However, it is important to do an assessment of your financial situation before buying a house of your choice. There are multiple factors that need to be considered because they influence our home buying decision of the buyer. One of them is the down payment for the house. A buyer can take benefit of the home down payment assistance program by HomeCapital.
HomeCapital Down Payment Assistance Program was started with an objective to help home buyers buy a home today rather than waiting for years. Rising income levels, along with government reforms and schemes have made it the best time to buy a home, down payment, however, remains a challenge. Not having enough down payment means settling for cheaper options or waiting for years for home ownership.
Taking a home loan has its own multiple benefits along with building an asset for the future. Every person can claim tax benefits under the section 80C for principal payments and section 24 for interest payments. If the property is held jointly, the individuals can receive additional tax benefits for the same cost.
There are multiple online sources which provide a guide that helps the first time buyers to avoid the common mistakes committed when buying their first home. This is how a buyer can take benefit from the asset for which the amount is paid from his/her pocket.