Amazing Advantages of taking BANK FINANCE in Buying properties.

Pune: Dear Readers, Greetings to all, from last few days, was thinking to write article on topic of bank finance, ultimately got time. It's been many years of estate consultancy experience in Pune, India which has encouraged me to share something very useful opinion about Bank Finance for buying properties as it's not only for enduser but also great for investors point of view. Our country like india has massive real demand from endusers in every city however it's sure that hardly a few percent of people can pay full amount at one go so most of the endusers are unable to think buying properties and hesitant to go for bank finance due to unaware of great advantages or somehow the traditional mentality for not taking loans however bank finance has so many benefits that not only enduser but also investors who wishes to increase their fortune can go for bank finance route to multiply their investment returns many folds...Now, i should first give list of points which can be discussed in detail as follows in support of benefits of bank finance:

a) Indirect Cost Discount: this will be great advantage to discuss which generally people don't realize as whether it's enduser or investor, takes bank finance to buy property gets discounts indirectly in a form of an own use or rental income, this point is valid on all properties whether it's under construction or ready possession. let me put it one example to understand better, let's assume that the property value is Rs. 30 Lacs so EMI (Equated monthly Installment) will be approximately 30,000/- Per month and Rental income of the same is Rs. 10,000/- Per month so ultimately Actual EMI is paid 20,000/- Per month which will indirectly reduce cost of property to 20 Lacs, the indirect discount of Rs. 10 Lacs. and a same way if property cost is 1 Crore and Rental income is Rs. 30,000/- Per month then it will reduce cost to 70 Lacs....Is't amazing advantage of Bank Finance?

b) Pay EMI instead of Rent: Enduser mostly are those who are staying on rent so Rent is a expenses which will never going to return back to them and instead they can move to their own residence and compensate with monthly EMI. this same logic is valid for investor as they can rent their property and compensate it with payment of EMI.

c) Inflation & Appreciation: I have put both these words together because nowadays, due to inflation only, prices of properties are appreciating so it's dual advantage that property bought today will appreciate for sure because of both these phrases supports each other and will not only compensate the interest factor of bank finance but also generate profit on selling it.

d) Reselling Property: Now, if it's investment or any other reason, if property is sold after few years then again bank financed property has great benefits, for example, let's have the scenario where bank finance property is sold in 3 years after so the EMI paid will be for 3 years + down payment made at the time of booking so let's say total paid amount is 30% percentage of the total purchased cost of the property, and new buyer approaches to buy this property who will generally clear current bank finance amount by taking bank loan himself or have ready money to pay in both the cases, property will be sold and profit will be made upon paying just 30% of the cost of property. Notice one more thing that there are no foreclosure charges by any bank now in India so the profit will be calculated upon the actual investment which is just 30% in this case. Isn't again amazing advantage of Bank Finance?

e) Tax Benefits: while availing bank finance option to buy properties, one can save taxes on various ways as prescribed by indian tax laws of income tax & others so instead of paying to government in form of taxes, one can buy properties and show it paid against it.

e) Satisfaction & feel of Security: this is moreover enduser reason as after every year, tenant gets worried for rent renewal and rent increase and no surety whether owner will renew it so if property is owned then this will give great satisfaction and feel of security which indirectly gives great energy to work more & enjoy life. These above points and many more advantages of Bank finance are valid only fortunately in our developing country like india where there is shortage of millions of houses and huge enduser demand will be there for many decades so future is really bright for real estate of india still one should consider point like Regular income source to pay EMI's and choose city and location carefully after checking future prospects of it....For that, we as an professional Estate consultants services can be utilized in one of the leading city PUNE, Maharashtra as it's very important to study and survey fully before buying or investing in any property to have surety of good investment & returns..

Dear Readers, these all above shared info is again my personal views with many years of experience in real estate consultancy, still i would really like all of you to comment your opinion freely on this subject to learn and assist all of us.