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Festival Time - Dont get Sucked IN!

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Festival Time - Dont get Sucked IN!

Last updated: September 21 2010
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  • Re : Festival Time - Dont get Sucked IN!

    Originally posted by gery128 View Post
    Atleast one person got it right!!

    But from April 2012, due to Direct Tax Code the principle amount won't be eligible for tax benefit though.

    I would suggest that buy RE if you want to use it anyway, because no one can predict the future.
    What about people who already have loan ? They will also get taxed ?

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    • Re : Festival Time - Dont get Sucked IN!

      Originally posted by hemanshu View Post
      What about people who already have loan ? They will also get taxed ?
      THEY WILL NOT GET ANY TAX EXCEPTION ON PRINCIPLE...BUT WILL GET EXCEPTION ON INTEREST .....at the samr timr person staying on rent will not get any exception at all...

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      • Re : Festival Time - Dont get Sucked IN!

        Originally posted by kothrud_pune View Post
        THEY WILL NOT GET ANY TAX EXCEPTION ON PRINCIPLE...BUT WILL GET EXCEPTION ON INTEREST .....at the samr timr person staying on rent will not get any exception at all...
        Today's DNA mentions that HRA is available under Section 23(1(h)) of the new DTC.
        Last edited September 2 2010, 01:59 AM.

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        • Re : Festival Time - Dont get Sucked IN!

          Originally posted by kothrud_pune View Post
          THEY WILL NOT GET ANY TAX EXCEPTION ON PRINCIPLE...BUT WILL GET EXCEPTION ON INTEREST .....at the samr timr person staying on rent will not get any exception at all...
          Why they dont just remove tax concession on Bank interest & provide deduction on principle instead. This will defiantly slow down bubble.

          Remember some years back builders were asking for 50-70% cash (Black) & there was no bubble at all. as no bank was providing money for such transaction hence less speculation

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          • Re : Festival Time - Dont get Sucked IN!

            Here is the link

            http://www.3dsyndication.com/showart...id=DNMUM183827


            Originally posted by hitmady View Post
            Today's DNA mentions that HRA is available under Section 23(1(h)) of the new DTC.

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            • Re : Festival Time - Dont get Sucked IN!

              Originally posted by hemanshu View Post
              What about people who already have loan ? They will also get taxed ?
              Yes man, they too will be taxed from 2012 onwards. These things are not retrospective. Add to it that HRA has been kept intact, the tenants too can enjoy .

              Btw, I never understood the logic of buying RE for 50L to save couple of lakhs, note that the outgoing EMIs are far higher than this tax rebate. Why don't people put their money under 80C & straightway save cash??
              If you are happy, you are successful.

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              • Re : Festival Time - Dont get Sucked IN!

                Originally posted by hemanshu View Post
                Why they dont just remove tax concession on Bank interest & provide deduction on principle instead. This will defiantly slow down bubble.
                they don't want that to happen....

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                • Re : Festival Time - Dont get Sucked IN!

                  Originally posted by realacres View Post
                  Yes man, they too will be taxed from 2012 onwards. These things are not retrospective. Add to it that HRA has been kept intact, the tenants too can enjoy .

                  Btw, I never understood the logic of buying RE for 50L to save couple of lakhs, note that the outgoing EMIs are far higher than this tax rebate. Why don't people put their money under 80C & straightway save cash??
                  Its not a couple of lacs, it is just 50000 Rs of tax saving even at 30% , and much lower at 20 and 10%. Now, if they put the 150,000 which they are paying as interest into Mutual Funds,they can simple earn 20-30% -- which would be 200,000 and more over a longer period of time.

                  Most people pay LIKE to pay interest to bank - think of it as the principal they are paying back -- for the house.

                  If only they know - during the first 10 years, they are only paying interest to the banks, for a 50 lacs flat, you need to pay 1 crore in total.

                  Really DONT understand the BUSINESS SENSE of BUYERS and the ITGs.

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                  • Re : Festival Time - Dont get Sucked IN!

                    Originally posted by pcpune View Post
                    Really DONT understand the BUSINESS SENSE of BUYERS and the ITGs.
                    Man, if everyone would have thought on these lines, would RE prices have hit so high?? Stupid buying makes builders merry as they know there is no dearth of bakras around. Ofcourse, I don't say that don't buy RE, but don't buy over-leveraging, that's all. If loan tenure is more than 10 yrs, then one is for a big toss.

                    *PS:- I would not recommend having home loan for more than 5 yrs. Buy only when you can fulfill this condition, you will be financially stable then, without the need to sacrifice other good things in life.
                    If you are happy, you are successful.

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                    • Re : Festival Time - Dont get Sucked IN!

                      Originally posted by realacres View Post
                      Man, if everyone would have thought on these lines, would RE prices have hit so high?? Stupid buying makes builders merry as they know there is no dearth of bakras around. Ofcourse, I don't say that don't buy RE, but don't buy over-leveraging, that's all. If loan tenure is more than 10 yrs, then one is for a big toss.

                      *PS:- I would not recommend having home loan for more than 5 yrs. Buy only when you can fulfill this condition, you will be financially stable then, without the need to sacrifice other good things in life.
                      realacres, the only thing that is forcing buyers in current times is the fear that if they don't buy now - they will not be able to afford tomorrow - prices will be beyond their reach!!! Else it could be peer or family pressure in IT circle!! Otherwise - I completely agree with pcpune/real/senior pros, they buying at these levels does not make any sense at all. And for investment purpose, man, it is a blunder - it could be a ridiculous decision to invest at this level. But who will gurantee that pricess will remain steady? Who gurantees that they will increase only 5-10% a year?? If by the end of next year prices are double and reach 5000-6000 level, who will be at loss? End customer right??

                      That is THE FEAR that is seeing buying even if it is too less. Nobody wants to miss the buss.

                      Another thing is you can take a loan, lock a property at curren price and repay loan it in 3-4 years time if you have good savings. You cannot afford to wait till 5 years when prices could be more than double.

                      Banks like SBI are not charging for pre-closure.

                      Murtaza

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