Are you considering investing in real estate but worried about the financial strain of paying off a home loan? What if I told you that you could potentially cover 8 months of your EMI payments just through tax savings and rental income? Here’s how investing in a 1BHK flat in Palghar for around ₹25,00,000 can turn out to be a smart financial move for you.
Why Invest in a 1BHK Flat in Palghar?
Palghar, a rapidly growing area with emerging infrastructure and connectivity, offers excellent investment opportunities. For just about ₹25,00,000, you can own a 1BHK flat here. With a manageable down payment and favorable home loan terms, this investment not only promises a comfortable living space but also a lucrative financial advantage.
Breaking Down the Investment
1. Initial Payment Structure:
- Property Price: ₹25,00,000
- Down Payment (7-10%): ₹2,50,000
- Home Loan Required: ₹22,50,000
2. EMI Calculation:
- Loan Amount: ₹22,50,000
- Interest Rate: 8.75% per annum
- Monthly EMI: Approximately ₹20,000
3. Rental Income:
- Monthly Rent: ₹8,000
- Annual Rental Income: ₹96,000
4. Tax Benefits:
Investing in property also brings substantial tax benefits. Under Section 24(b) of the Income Tax Act, you can claim up to ₹2,00,000 in home loan interest deduction annually. Additionally, under Section 80C, you can claim up to ₹50,000 towards the principal repayment.
Assuming you fall under the 30% tax bracket:
- Tax Savings on Interest Deduction: ₹2,00,000 x 30% = ₹60,000
- Tax Savings on Principal Repayment: ₹50,000 x 30% = ₹15,000
- Total Tax Savings: ₹75,000
Calculating Your Effective EMI Outgo
Here’s how your rental income and tax savings can offset your EMI payments:
- Annual Rental Income: ₹96,000
- Tax Savings: ₹75,000
- Total Savings: ₹96,000 + ₹75,000 = ₹1,71,000
Dividing this by your EMI amount:
- EMI Amount: ₹20,000
- Months Covered: ₹1,71,000 ÷ ₹20,000 = 8.55 months
Voila! Your rental income and tax savings can effectively cover 8 months of your EMI payments.
Why This Makes Sense:
1. Affordability: With only a 7-10% down payment, the rest of the purchase is financed via a home loan.
2. Rental Income: The flat generates a steady rental income, which substantially offsets your EMI.
3. Tax Savings: Significant tax benefits reduce your overall financial burden.
Investing in a flat in Palghar can be a savvy financial decision. Not only does it provide a tangible asset, but the rental income and tax deductions can make the financial load much lighter. By leveraging these benefits, you could potentially save on EMI payments for nearly 9 months.
If you’re looking for a smart investment that aligns with both your financial goals and lifestyle needs, a 1BHK flat in Palghar could be your ideal choice.
Get Started Today!
Don’t let concerns about financing deter you from investing in real estate. With the right strategy, you can make your investment work for you. Explore your options, consult with Ankit, and start your journey towards owning a valuable asset in Palghar.
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