Don't repay, invest somewhere else though you are paying more interest, remember what ever u r repaying won't get you back in emergency, so invest and take tax benefit and emergency fund
The 6th Money law says that money comes happily and in excessive amount to the person who invests his money to buy a home where his family can live for years.
After buying your home, instead of paying off your low-interest rate home loan quickly, you should invest your savings to buy other rental apartments or invest your money in other investments where you can get better returns than you are paying to your bank.
This is not only the option. You can also invest in property for your exra income that gives atleast 25-30% return in respect of home loan interest (less than 10%)and you will be benefited by return in property
Under 80C, the maximum threshold limit is Rs.1.00 lakh, in which major components are linked. Though, someone's desire to repay the loan early is a welcome move, immediately the tax payee needs to look for alternative.
With PPF investment increase is doing the rounds, it will be better to continue the loan for some more time till the great NETA (Mr.Pranab Dada) does a rethink on increasing the 80C contribution.
Till such time, it is advisable to continue for one more fiscal with a 'wait & watch' option.
Re: Prepayment of Housing Loan
by aravind suresh on Dec 19, 2011 10:26 PM
I would suggest save gold instead of repaying in cash. Sell the gold once you reach the targeted amount.
