Publication details: Property Hotline โ MB Now – 22-09-2016
Responses, opinion and view from Kartik Jhaveri
Question sent by Ankur:-
I have Rs. 45 lakhs that I got from the sale of a property. I also have a home loan of Rs. 36 lakhs on another 3 BHK property located in Ghaziabad. The flat is ready for possession. Will it be a good idea to use the Rs. 45 lakhs to repay the home loan?
Advice given:
- Existing loan gives you tax benefits… Hence continue, provided you are comfortable servicing the EMIs.
- Instead of using this money to prepay the home loan, invest this money in wealth creating assets like equity mutual funds.
- Money doubles about every 5 years.
- In about 5-10 years you will be able accumulate a corpus which will pretty much help you pay off your loan and also reimburse you the interest that you have paid off. Hence property become free.
- Alternatively you can even invest the money conservatively (at about 9-10% p.a.) which will help you earn about Rs. 4-4.5 lakhs a year. You can use this money to service your EMIs.