Great Living Engineered
Home, sweet home! A phrase we may not be using as much as we truly feel it. Merely a flat is not home. Home is what you invest yourself in, where you feel content after a tiring day at work. But these are only the seasonings. The base ingredient to being at home is owning it yourself. Granted, purchasing a home is no trivial decision but isn’t that what makes the experience one to cherish. Yes, the prices are surging and of course, it’s not the easiest process. So, what is so alluring about possession of a home?
This is your home. No stingy landlord, no constraints on hanging those family portraits and other do’s and don'ts. Customize your home to reflect your personality and you will truly know what it means to feel cozy and safe. Moreover, owning a home gives one a very genuine sense of stability, maturity and independence.
It’s the time of the year to do your taxes. Now is when you will pat yourself on the back for owning up to that wise decision of purchasing a house. Tax benefits exist solely when one opts to buy a home through a home loan, which is desirable since that is what most of us opt for. So, how does a loan which one might consider a liability benefit us?
As stated under Section 24, the interest payable on the purchased housing loan is divided by a certain number of years. This amount is deducted from one’s annual salary and the taxes are calculated on the remaining amount. All in all, the tax one pays reduces substantially. Deduction on interest rate has an upper limit of 2 lakhs as revised for 2015-16.
So now you have a home and you pay less tax.
There are a few smart moves in life that could change the entire game. The faces on the business magazines have played by these strategies. One of the crucial moves is to build upon assets and not liabilities. Liability is something you owe whereas asset is something you own. Assets add value to one. Now, the need for shelter being a primal need, it is vital to follow the rule of assets here.
A rented house is a liability as you owe a sum of money on a monthly basis. It is adding no value to you, but in fact, it is draining you. On the other hand, a house you own is an asset. It’s a one-time investment whose value increases over time.
Materialistic things lose value over time. The smart phone that cost INR 20,000 a year back has dropped to INR 12,000. So is the case with most other things we tend to hoard up on. Real estate properties defy this law. As the population is swelling, city outskirts are being encroached. A research states that by 2030, the percentage of population living in urban areas will increase to 70% percent from the current 50%. This depicts the expansion of urban areas. That is to say, the property price will also increase in these backward areas over time. One could buy a house for a cheap rate and watch the value triple within a span of 20 years. It’s choices like these that merit to your worth.
We have evolved way past the nomadic phase. The basic human need is not just shelter but a stable home. No one wants to burn a hole in their pockets paying the rent monthly and not knowing when one would have to move out. Owning a home gives us the true sense of stability. Especially when one is looking forward to starting a family, it is essential to provide a certain familiarity and security factor. A home is not just a financial investment but also an emotional one.
Equity in terms of home ownership is about the share of the home one owns. When one purchases a home and mortgages it, a share of the money paid by the borrower each month goes into paying off the principal while the rest is an interest which the lender enjoys. Thus over time the equity increases and the gain from the investment can be utilized for yet another investment. This strategy has even evolved into a profession over the last few years.
Settling down makes you part of a community. You build relations that provide an emotional support. You have your own private space while still being a part of a bigger family. Gatherings, morning walks, evening tea, they all become a little celebration. As social beings, this is of utmost importance.
Buying a house is a one-time investment. Once it is made, you only have returns to look forward to. Renting a house, however, is monthly cash out. What’s truly troubling is the unpredictable hike. This affects your budgeting. Owning a home allows you to break free from this undesirable suspense and also positively affects your savings.
When you own a house, everything from the locality you live in, to the design of your inbuilt cupboard is in your hands. You can put up new walls, fancy lights on the ceiling and pictures of your loved ones above your bed. There are no boundaries but the ones you set. Taking control over every aspect of building one’s home makes them independent and gives a lesson on taking on the real world.
Credit scores play quite an important role. They are basically your marks card to a bank. So building up a credit score can be quite crucial. Applying for a home loan is one of the many ways you can do so. Moreover, since the loan is paid over a long period, regular payment shows reliability and responsibility and this further leaves a good mark on your credit score.
A home that is truly yours to head back to is the highest form of self-assurance. We all have our own priorities, but owning a place is something irreplaceable. It’s not simply about fancy flats in Pune or a condominium in Chennai. It’s about turning this place into a warehouse of memories to cherish and learn from. A green and clean city like Pune, a 2BHK flat, a small family, the view of jogging park and a gush of cool breeze blowing the curtains aside, while you sit sipping your hot tea and waving at your next door neighbor. It’s the city dream, isn’t it? Well, there is no reason to leave that as a dream anymore. Find your space and make it your home.