Many people across the globe dream of living in a descent house which is well furnished. Among these people some live in their own houses which they may have inherited from someone else or they may have built for themselves. Though it’s good to have shelter in form of a house, millions of people across the world are homeless while quite a number live as monthly tenants. It feels nice when one owns his or her own house without any debt. For those people who rent houses it is advisable for them to take a Home Loan to enable them have their own house. Here are some of the advantages of taking a Home Loan.
1 Cheaper to pay back
The repayment of Home Loan is usually done on monthly installments for up to a period of 20 years depending on the amount taken. The monthly installments for the mortgage can range from 1000-5000 depending on the amount one earns as well as repayment period agreed. One can also pay the loan through part-payments and immediately when the mortgage is the cleared one becomes the owner of the house.
2 Home Loans saves the monthly rent
A Home Loan once taken saves one from the large amounts of monthly rent to be paid to the landlords. The charges of the installments are lower a compared to monthly house rents. One can save or start an investment with the extra money that he or she could have used to pay for the monthly rent and thus taking a Home Loan to acquire personal home is more economical than living in a rental house where you pay for monthly rents.
3 Future investments
Taking a Home Loan is one of the best investments for the future. After 10 to 15 years one can become the real owner of the property acquired through this mortgage and thus when one decides to sell the property in the future its value might go up 80% more than the initial amount paid. This is so because of the appreciation in price. The house will also be an investment for the family members who will have a place to live. One can also convert part of the rooms into several rental apartments that can act as a source of income for house owner.
4 No risk involved
Taking the mortgage from a national or international bank to buy a house from the right owner is more secure. The only worry one will have is the payment of the monthly installments as per the terms and conditions agreed. As long as one has acquired the property, payment of the monthly installments need to be made on time and thus one will not risk loosing the property.
5 Deductions on interest
Repayment of the Home Loan accrues with time into interest which one can claim from the bank. If for example in the process of repaying the mortgage, you have paid 100000 as interest you can claim a deduction from the mortgage firm whom in turn can pay you 5%-10% of their interest