in these days of increasing cot of home loan and property what is best choice and suggestion?

Question

Banks these days are on increasing home loan interest rates making it difficult for salaried class to hope to own a home because the homes are also costlier and is a dream to be fulfilled. How to manage home, home loan repayment when salaries hardly suffice with rising cost of living and increasing inflation with the current budget offering nothing. It is a costly dilemma because both are just and essential. Can some one suggest a way out to balance both?

Answer 1

Still I am of the opinion that investment should be made in real estate as it gives you 2 (Two) fold income
1) Rental
2) Appreciation in value of the flat
As from rental one third is allowed as outgoing Income is payable on 2/3rd of the income after allowing deduction for property tax and interest. In no other business this facility is available. Moreover, on capital gains indexation cost benefit is available for payment of reduced tax.
hence, still there is high potentiality in Real Estate although the prices have gone up. It also depends in which city or town you are investing. If it is Mumbai you are at no risk you can blindly go for it provided you have chosen a good, reputed and trust worthy builder.

Answer 2

the only real suggestion is STOP BEING A SALARIED EMPLOYEE! they get taxed the most! really. but thats not always an option. what i do now.. and i buy 2 or 3 houses every month and sell them within a week... don't look for a house, look for a motivated seller! call people until u find someone that will take back some financing, lower their price, or even wait for their money. some even already have moved and they paying 2 mortgages! all they want is someone to pay their first house that hasn't sold! u can use a wrap around contract (depending what state you're in) or an all inclusive trust deed (in california), and just pay their mortgage! they may just actually GIVE U THE HOUSE just to get rid of that second mortgage payment. it has happened to me.

Answer 3

increasing cost of home loans?

We have some of the lowest interest rates in 30 years still.... Any home mortgage at under 10% interest rate is pretty good. We can still get under 7% with ease.

Home prices may be up... but that's called inflation. If you were selling and the price wasn't up from when you bought you'd have a fit.

Learn about economics. You show a total lack of understanding.