Hi guys, I'm planning to purchase a flat in Hyderabad for 80L. I have 40L cash in savings. I know I should have invested by now, but didn't have much financial knowledge until recently.
Now I have two options, either I take a home loan, and invest the 40L as lumpsum into a mutual fund or use the money to purchase the house with zero loan (Planning to sell a flat in hometown for rest of the amount).
I have been reading that investment + loan is better because of effective interest rate post tax benefits vs expected gains from investments. But I realised that the tax benefits don't last the entirety of the loan tenure as interest is paid mostly in the first half of the tenure, and tax benefits are on the interest amount only. I max out 80C with ppf so no benefit on the principal.
Wanted to get advice on this from folks who have knowledge on this or have gone through this already. If loan is the way to go, how to plan for it in terms of tenure, how much emi to target.
Blind tax:
Yoe - 3
TC - 41
#personalfinance #investments #realestate
Want to see the real deal?
More inside scoop? View in App
More inside scoop? View in App
blind
SUPPORT
FOLLOW US
DOWNLOAD THE APP:
FOLLOWING
Industries
Job Groups
- Software Engineering
- Product Management
- Information Technology
- Data Science & Analytics
- Management Consulting
- Hardware Engineering
- Design
- Sales
- Security
- Investment Banking & Sell Side
- Marketing
- Private Equity & Buy Side
- Corporate Finance
- Supply Chain
- Business Development
- Human Resources
- Operations
- Legal
- Admin
- Customer Service
- Communications
Return to Office
Work From Home
COVID-19
Layoffs
Investments & Money
Work Visa
Housing
Referrals
Job Openings
Startups
Office Life
Mental Health
HR Issues
Blockchain & Crypto
Fitness & Nutrition
Travel
Health Care & Insurance
Tax
Hobbies & Entertainment
Working Parents
Food & Dining
IPO
Side Jobs
Show more
SUPPORT
FOLLOW US
DOWNLOAD THE APP:
comments
Play with a emi calculator to see how much years of loan you should get to maximize that. It will show the monthly/yearly interest and principal.
MF growth has been normally better than loan interest rate. Maybe take it as 10% and for loan as 7%.. you can do an approximate calculation on the savings and if it is worth the loan.