Buying and renting both have their ups and down, but one is proven to make your money go further. Buying a home is almost always the better choice, if you’re ready to take on a mortgage and all of the other costs that come with home ownership, that is. But, before you shy away and sign that 12-month lease, consider what you could be getting and saving by buying a home instead. Here are 10 advantages of buying a home versus renting:
Showing posts with label Home loan. Show all posts
Showing posts with label Home loan. Show all posts
Wednesday, February 23, 2011
Monday, September 20, 2010
New Direct Tax Code effective 2012: How it effects Personal Finance: completely explained
In the year 2009, Government had announced the New Direct Tax Code (DTC) from 01/04/2011. This announcement had created a big hype and also talked about simplifying our Tax structures. Initially it talked about replacing EEE(Exempt Exempt Exempt) regime i.e. Exempt at Contribution, Exempt at accumulation and Exempt at withdrawal with EET (Exempt Exempt Taxed) regime i.e. all savings and investments would be taxed at the time of withdrawal. Income tax Slabs were proposed to be significantly higher from present which would have resulted in much lesser tax outflow.
Saturday, August 21, 2010
Purchasing or renting a house- The debate continues
In my earlier post (The magic of compounding), there was a very heated as well as healthy discussion with one of my reader regarding "Is it better to buy a house or simply rent it " and invest the entire capital on which power of compounding would would work which might give higher returns with no strings attached. Although every individual might have different view in this regard, I found 1 very useful calculator at http://www.itrust.in/tools-and-calculators/Buy-vs-Rent/Calculator.jsp which gives a rough estimate based on some inputs. Although there are many assumptions, as well as there might be regulatory changes in future which might change the dynamics.
Thursday, June 3, 2010
Tax treatment of Home Loans
The Income Tax Act, 1961 provides tax benefits for assesses that have home loans. The home loan which has to be repaid to the bank in monthly installments. The installment consists of two components i.e. - interest and principal repayment. The bank gives a detailed worksheet of the loan calculation and of the bifurcation of the EMIs paid by the borrowers. These monthly repayments are qualified for deductions from income tax.
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