How Financing from Banks be useful for first home buyers?

Buying a property over renting has been one of the most debated topics. While many people prefer paying rent for a house due to the flexibility of changing the residential address when needed, there are others who feel paying EMI for your own home is better than paying rent. For people who are interested in buying a property for the investment purpose or the end use, here are a few advantages of financing from Bank for the property.

• The Indirect Discount on Cost: when you plan to invest in property, taking a home loan from Bank will help you reduce the cost of the property in the long run. For example, if you wish to buy a property that costs 50 Lacs and you take a loan of 30 Lacs, then your monthly installment for loan repayment will be close to Rs. 30,000/- per month. If you rent the same property at a rent amount of Rs. 10,000/- then your EMI will be reduced to Rs. 20,000/- per month and hence, the property will cost you 40 Lacs at the indirect discount of Rs.10 Lacs through rent.
• Pay EMI instead of Rent: Just the way you pay rent to the owner of a flat, you could pay EMI of the Bank loan which will help you acquire a home of your own. This way the money that you spend on renting a property can actually be utilized in paying the EMI of the bank loans and thereby, owning a property of your own.
• Price appreciation over time: If you buy a property today, the price of the property will appreciate and thus, it will be a source of good return on investment. Also, the interest rate applicable on your loan will remain the same and hence, you will be able to increase the rent of the property or increase the price of the property at the time reselling as per the appreciation of the property rates of that particular city without having to pay extra EMI for repaying the bank loan.
• Satisfaction & security: When you rent a house, paying rent and renewing the rental agreement with the owner every year can get you worried. But, if you own your home, you just need to pay the EMI and you need not get worried about any renewals and agreements. Hence, you feel a sense of security and satisfaction when you own the property and are not staying in a rented flat.