Is taking a home loan a good or bad financial decision?

financialexpress.com:

A home loan is a long-term financial commitment and not everyone is prepared for it. However, if you consider the kind of benefits you get financially from home loans, this financial tool really helps you build one of the most valuable assets not just for you but for the generations to come.

It is not an easy to decision to make. Few decisions carry as much weight and significance as taking out a home loan. For many, buying a home is akin to fulfilling a lifelong dream, and navigating the complexities of home loan borrowing can be both daunting and crucial to financial well-being. So, let’s understand whether opting for a home loan a good or bad financial decision.

Owning a home is often seen as a cornerstone of financial stability and wealth creation. By taking a home loan, you can acquire a valuable asset that typically appreciates over time, building equity and long-term financial security.

Home loan borrowers can avail themselves of several tax benefits under the Income Tax Act. Deductions are available on both principal repayments (under Section 80C) and interest payments (under Section 24), reducing the overall tax liability significantly.

Also Read: A Beginner’s Guide to Acquiring Your First Credit Card

Home loans allow individuals to leverage their purchasing power, enabling them to buy properties that might otherwise be financially out of reach. With competitive interest rates and extended repayment tenures, monthly EMIs become more affordable, aligning with borrowers’ income levels.

Real estate historically serves as a hedge against inflation. As property values tend to appreciate over time, homeownership can safeguard against the erosive effects of inflation on the value of money.

While home loans offer