Buying a dream home is a close to heart affair for all of us. And it is usually a long wait before we realise this dream of ours. We are keen to put in every penny saved out of the hard-earned money to buy the best villa. This is an investment that we make for a lifetime and for generations to come. 

Some are lucky to accomplish this dream of theirs without having to depend on the support of a housing loan. For many others, to purchase a villa using a housing loan might turn into a necessity. 

You might definitely have certain apprehensions associated with when it comes to taking a housing loan. To take a loan or not might be the first question that arises in everyone’s mind. 

Here are some factors that will turn beneficial while deciding whether to avail a housing loan or not. 

Some Instances Which Favours A Housing Loan Are

• Access to a regular income

If you are employed and have the advantage of having a regular income on a monthly basis, then it is advisable to seek a housing loan. This is because you might not find it difficult to meet the monthly interest rates or EMIs. If your monthly income is sufficient enough to support you in this regard, seeking a housing loan would be ideal. But, in case you have a doubt or uncertainty whether you will be able to meet the demands of EMIs or interests, you should think about some other alternative. 

• Housing loans that extends attractive interest rates

Most often housing loan providers extend attractive and reliable interest options to its borrowers. The payment of the interest can actually be considered as a kind of savings that you make. The amount, which you might otherwise have ended up spending for something else that may not have been as important as owning a home, could be wisely and ideally used to purchase a villa.  

• Housing Loans tend to ensure a legality of the villas

Buying a villa using a housing loan is beneficial because it actually compels you to examine whether every document from the seller is accurate. The formalities of housing loan procurement usually seek a detailed set of documents. You need to procure and furnish these from the seller. Hence, you get the advantage of making sure that all the documents obtained are in order. 

• Tax Benefit

Another important advantage of availing a housing loan is the tax benefit that you get. Purchasing a villa without a housing loan will not give you a tax exemption. 

Instances When Housing Loan Can Become A Burden 

• Creates a commitment

Availing a housing loan calls for a commitment that one definitely needs to make. To repay the principal amount along with interest every month will turn into an avoidable task. It might create a feeling that you are indebted for the rest of your life or until the loan gets closed successfully. 

• You lose the chance of making another investment

By seeking a housing loan, you will be forced to trim down all your expenses in order to meet the payment of the housing loan’s interest every month. In this regard, you might be missing out on an alternative investment option, which could have fetched you some handsome returns. 

• Onset of unexpected contingencies

Life is definitely uncertain and calls for situations that may or may not be under our control. If you happen to face any sort of hardships or uncertainties, it can hinder your monthly repayment, which could in turn lead to higher penalties and other discomforts. 

In Brief

Buying a villa without a housing loan can look safer in some instances and not wiser in some other instances. This is because the final decision revolves around you and your financial situations. If you are quite sure that buying a villa using a housing loan can be managed by you, you must definitely go ahead with that option. 

Whatever be your decision, you must remember to discuss it with your family and think wisely by taking the needed time, before you come to a final decision. This is because buying a villa, which was your dream for many reasons, shouldn’t turn into your worst decision. Hence, consider your financial stabilities, your preferences, priorities, family’s onion and only then come to a final conclusion.