A Comment on Housing Loans and Affordable Houses

My Comment on an article "Big players entering the affordable housing, housing prices could go down soon: Deepak Parekh, Chairman HDFC Ltd." published in the economictimes.com Dated 02/05/2017.


"Good news. Big Corporates and Developers are showing more interest in housing business with the new facilities offered through RERA act to both builders and customers. Now, builders need not pay tax on notional rent for the first year after obtaining the completion certificate of the building. So, they have one full year to sell their flats without incurring any extra burden.

But, from the viewpoint of the customers, and as myself being a middle-class person, I request our Banks and Government that loan facilities should be extended for the full 100% cost of the house instead of the present 80 or 90 per cent loans. Then only people could be in a position to buy their own homes. Otherwise, it is very difficult for people like me to arrange for even Rs.one lakh that is essential as the deposit to get a housing loan."

A Comment on provision of tax deduction on Second Home Loans

My comment on an article "Budget 2017: Government rules out tax incentive beyond Rs 2 lakh for a second home" published in the economictimes.com Dated 04/02/2017.


"This is a very reasonable argument. 

Why should the government bear loss on account of providing a second home to people? 

Allowing a deduction for the first home is an act of generosity and it is necessary also. 

But, allowing deductions for a second home also is equal to the foolishness of the administration. 

That money could be used more beneficially in providing homes to the homeless people. So, the government is justified in doing so. They should restrict the amount to Rs 2,00,000 only with immediate effect."

A Comment on unknown facts of tax reliefs for home loans under Section 24 and 80C

My Comment on an article "Six things about home loan tax incentives you didn't know" published in the economictimes.com Dated 24/05/2016 at 3 pm.


"Very useful information provided in this article by the author. 

The differences between deductions allowed under Section 24 and Section 80C have been clearly mentioned. 

Most of us do not know that tax relief is allowed on interest payments and consultancy or other fees paid for borrowings made even for the repairs and reconstruction of our homes. 

The main points underlined are:

• You can claim tax benefit for interest accrued for the full year even though you skipped some EMIs.
• Processing fees and other charges incurred in getting the loan are also tax deductible.
• Loans obtained from friends and relatives are also tax deductible if taken for home loan purpose.
• Loan principal repayments during the pre-construction period can not be claimed for tax relief. But interest part of those EMIs can be claimed for tax relief during subsequent 5 years after possession of the house.
• If it is a joint loan, one should be a co-borrower along with being a co-owner of the house for enjoying the tax reliefs.

A Comment on which loan to pay off first, if there are many loans

My Comment on an article "Which loan should you pay off first?" published in the economictimes.com Dated 3/12/2014 at 5:10 pm.


"Very useful information given here. 

Highest interest loans should be cleared first and then think of clearing the next higher interest one. 

So generally home loan repayments can be prolonged in order to facilitate clearance of your other higher interest loans. But it does not mean that you can skip instalments of home loans in order to meet your monthly expenses. 


Any type of loan is a loan and it is a burden on you until you clear it. So loans should not be taken in first place. And if you take loan, you should clear it at any cost by reducing your other expenses."

A Comment on reason for Banks in cutting Home loan rates

My Comment on an article "What Prompts Banks to Cut Home loan rates" published in Economic Times dated 23/12/2013 at 3:10 pm.


Inflation has its influence on realty business. 

Realtors should offer a small discount to boost their business. Mere interest rates can not increase the demand largely. A small incentive by realtor can draw much customers towards him.