Money tips for first-time homebuyers: Tax saving to finding the right lender – Explained

financialexpress.com:

Buying a home for oneself is a dream for many in the working-class population. That feeling you get when you save up enough and zero in on the house; that feeling when you see the happiness on your mother’s face on the day of housewarming; that feeling of creating a safe place for yourself — words aren’t enough to portray that.

Times have changed, and how. If people in their 40s were the ones buying or building houses until a decade back, millennials have now taken over the baton — they like to start early, so their retirement period is peaceful and their bank accounts, full of savings.

If you are looking to buy a house for the first time, we are here to help you wade through a couple of obstacles that you may face in the journey.

First things first — do you have any advantages of being a first-time home buyer in India, other than getting a house for yourself? The answer is yes. As a first-time home buyer, you can enjoy deductions on interest rates under Section 80C of the Income Tax Act, under the old tax regime. Upon repaying the principal amount of the home loan, you are eligible to claim a tax benefit of up to Rs 1.5 lakh.

As per Section 24, upon repaying the interest amount on the home loan, you are eligible to claim a tax benefit of up to Rs 2 lakh.

You can also claim an additional tax benefit of up to Rs 2.7 lakh if your annual family income does not exceed Rs 18 lakh.

Also Read: Real Estate vs Stock Market: Where to invest your hard-earned money?

Venturing into the real estate space could be tricky for some. One of the easiest methods would be to find a small, cosy, decently-priced home for which you may not have to take a hefty loan from the bank. Now, how do you go about buying the house? The first and